New Tax Reform May Impact Charitable Giving
Tax reform likely to impact the charitable deduction
For many HCF donors, the year 2017 may be the last year to utilize income tax savings from their charitable gifts.
Proposed tax law will eliminate some tax deductions (state and local income taxes) and limit others (property taxes), and will double the amount of the standard deduction. As a result, fewer than 10 percent of people will itemize deductions in 2018. The other 90 percent will not get a tax benefit from deductions like charitable contributions.
If you are one of those taxpayers who will itemize deductions in 2017 and might not itemize in future years, your tax advisor may recommend that you take as many deductions as possible before the end of this year. The Hamilton Community Foundation can help.
There are a several ways to give through the Hamilton Community Foundation:
- Contributions to a donor advised fund made this month will be deductible on your 2017 tax return. You can then choose the time to recommend distributions from the fund. This is a great way to claim a tax deduction now for supporting your favorite charities in the future. Establishing or adding to an HCF fund is simple.
- Gifts of appreciated stock are also a great asset to give in 2017 with a potential of multiple tax benefits.This type of gift avoids capital gains tax and allows the maximum tax deduction for the full market value of the gift.
- If you are 70 ½ , gifts from your IRA may also be an option.
More information from the Chronicle of Philanthropy.
As always, everyone’s tax situation is unique and we encourage you to consult your own tax advisor before employing any tax planning strategy.
Contact the Foundation today at 513-863-1717 or email Katie Braswell at [email protected].