Wondering how the new tax law will affect your charitable giving? Here’s a snapshot of some of the things that changed and stayed the same.
What changed that has many donors looking for additional ways to reduce their 2018 taxes?
- Standard deduction was doubled ($12,000 single, $24,000 couples), meaning less people will itemize on their 2018 tax return. If you itemized on your 2017 tax return, look at line 40 on the 1040 form to see if you’re affected.
- Deductions for state and local taxes are now limited to $10,000.
What stayed the same and can be used as an option for a charitable donation?
- You pay no capital gains tax on gifts of appreciated securities or real estate, whether you itemize or not.
- You can still make a gift from an IRA through the Qualified Charitable Distribution (available to those who are 70.5 years of age or older).