December 04, 2018
Tax-Smart Year-End Charitable Giving
Source: investmentnews.com | Re-Post Fight for Life Foundation 12/4/2018 –
When our extended family gathers around my sister’s Thanksgiving table each year, we each express our gratitude for the people, events and experiences that shaped our lives over the past year. Inevitably, our thoughts and sympathies turn to the victims of recent disasters, such as those who lost their homes in the California wildfires and Florida hurricanes, and what we can do to help.
For families across America, Thanksgiving marks the beginning not only of the holiday season, but of the giving season. The official kick-off begins with next week’s Giving Tuesday and runs through year-end.
But as a result of the new tax law, which nearly doubles the standard deduction to $12,000 for individuals and $24,000 for married couples filing jointly in 2018, fewer Americans will itemize their deductions. That means most taxpayers will not be able to deduct their donations on their tax returns.
Certainly a tax break is not the major motivation for most philanthropy. But utilizing tax-smart giving strategies can allow some donors to give more and enable others to grow their initial contributions tax-free until funds are disbursed to designated organizations.