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Bah Humbug To Charity?

from: https://givingusa.org

Experts say that the proposed Republican tax plan will decrease incentives for Americans to give to charity in 2018. As a result, some people who currently itemize decisions are considering making advance payments before December 31, 2017.

With the standard deduction doubling to $24,000 for a married couple in 2018, some 30 million fewer taxpayers are expected to itemize deductions.

Currently, gifts of appreciated stock held for more than a year is better than giving cash; if you itemize deduction you can donate stock and take a charitable deduction for the stock’s fair market value on the day you give it away.

Ironically, the new Tax Law will hurt religious institutions to hardest; they currently account for some 32% of U.S. annual $390 billion of charitable giving. According to Giving USA only 5% goes to the arts/culture/humanities and only 3% goes to environment/animals.

This post is not intended to give financial advice – please contact your CPA or financial advisor for recommendations for your specific situation.

One Response to Bah Humbug To Charity?

  1. R Voice

    December 22, 2017 at

    The tax measure passed by Congress on December 20, 2017 will increase the federal deficit by $1.5 trillion.
    Under a 2010 “pay-as-you-go” law, also known as PAYGO, the jump in the deficit will trigger automatic spending cuts in several programs, including Medicare. According to the nonpartisan Congressional Budget Office (CBO), PAYGO requires total cuts of $136 billion in 2018, including $25 billion to Medicare alone.

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