As we enter the final months of this unusual year, many people will be considering year-end charitable giving. Charitable gift planners and development officers know this giving season all too well. It goes without saying that 2020 has been a challenging year, and the fourth quarter seems to have snuck up quickly. Given the host of charitable tax law changes over the last 36 months, a refresher might be useful.
The 2017 Tax Cuts and Jobs Act: First, it is worth remembering that the 2017 Tax Cuts and Jobs Act increased the deductibility of cash contributions. Prior to the TCJA, cash gifts were deductible only to the extent of 50% of the donor’s adjusted gross income. TCJA increased that to 60%.
This 60% contribution obviously makes cash gifts more appealing for individual donors. However, it also can act to reduce the unrelated business income tax
Business Development Manager at Karla Dennis & Associates INC, overseeing the Sales Department in North America. Follow me @karltondennis
Business owners make mistakes all the time. For the everyday entrepreneur, mistakes are just lessons to be learned. My client, a successful CEO named Marco, was just 24 years old when he learned that if you are going to make a big contribution to charity and expect to receive a tax write-off, before you go buying a large presentation check, make sure to do some tax planning. Marco had written a $2,000 check to his favorite local nonprofit and had planned a whole scene for how he was going to deliver the gift. He remembered to write a real check to the charity; however, he forgot to inform his tax advisor before writing the check in his business name.
As a business owner, you may be thinking of additional