Tax Law Changes Allow For Year-End Charitable Planning Opportunities

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

Read More

How Business Owners Can Make Charitable Contributions Count Toward Tax Write-Offs In 2020

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

Read More