Tax Bill & Charitable Donations - Act Now!
The Republican tax legislation has just passed. The bill makes sweeping changes to the US tax code, beginning on January 1, 2018. This very brief period before implementation means that in addition to planning your holiday celebrations, you may also benefit from shifting some of your planned charitable contributions (2018 and beyond) to 2017.
The reason for making contributions before the end of the year is that the near doubling of the standard deduction—to $12,000 for single people and $24,000 for married couples-- means that many taxpayers who will itemize for 2017 will no longer do so for 2018 and beyond. For those who take the standard deduction, the tax benefit from charitable contributions will be zero. So, if you itemize now, but do not expect to do so in 2018 in beyond, you will achieve greater tax savings by shifting contributions from 2018 to 2017.
If you do not currently itemize, the timing of your charitable donations does not matter. If you do currently itemize and expect to continue to do so after 2018, the timing is still largely irrelevant (based on your marginal tax bracket). But if you will take itemized deductions for 2017 and the newly increased standard deduction for 2018, and if you were planning to make charitable donations over the next several years, it may benefit you to accelerate the process by contributing more in 2017.
We stand ready to answer your last-minute questions regarding charitable giving; contact us before it’s too late!
— JMS Team
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument or investment strategy. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting and legal or tax
advice. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.