The holiday season is one
Where Should You Donate?
Some people have organizations they already care about, while others just want to give back to the community in some way. Before you select a charity, you should make sure it is considered to be a qualified charitable organization so you can take a tax deduction. The IRS has a search tool that allows you to identify whether a specific organization can receive tax-deductible donations.
What Should You Give?
Many people give cash to charities because it can be accomplished quickly without any valuation questions. However, you may also consider the following types of giving:
- Appreciated capital gain property
- Admission to fundraisers or purchases at charitable auctions
- Volunteer services (for which you can deduct associated expenses)
The New Tax Plan and Charitable Deductions
In years past, many people have generously given to charitable donations and then taken a generous tax deduction for the gift. However, the Tax Cuts and Jobs Act has increased the standard deduction for both single and joint filers. While a higher automatic deduction is not necessarily a negative thing, it does mean that most tax filers – except the wealthiest – will not benefit from itemizing their deductions. This means that they may receive no real tax break from charitable donations. It may benefit some people to “bunch” two years’ worth of donations to exceed the standard deduction this
Estate Planning and Charitable Giving
For people who want to leave a legacy of charitable giving, there are many tools to use to accomplish your goals and have your estate receive potential tax benefits. These include:
- Gifting appreciated assets
- Family foundations
- Charitable remainder trusts
- Donor-advised funds
You should discuss your short-term and long-term giving options with a trusted attorney.
ContactOur Utah Estate Planning Lawyers for More InformationAt Craig Dell Attorneys, we hope that everyone has a happy holiday season filled with the spirit of giving. If you would like to discuss your future plans for your finances and family, we’re here to assist you. Contact us online or call 801-783-2515 to start achieving your long-term goals today.