"Although nothing has changed for 2025, the recently passed tax bill will usher in three major alterations to charitable giving in 2026, two of which limit the tax benefit of charitable giving for taxpayers who itemize their deductions. For those in the highest tax bracket (37 percent), there will be a new cap on charitable deductions, from 37 cents on the dollar to 35 cents on the dollar."
"To get ahead of these new tax rules, one strategy to consider is to open and fund a Donor Advised Fund (DAF). DAFs allow you to contribute cash, appreciated assets (stocks, mutual funds, exchange traded funds, and in some cases, private equity or hedge fund interests, crypto, and restricted stock), take an immediate tax deduction on the contribution, and then grant to an eligible IRS-qualified public charity over months or years."
Three major tax changes to charitable giving take effect in 2026. Two changes reduce tax benefits for itemizers: a cap for the highest tax bracket lowering deductible value from 37% to 35% of donations and a floor requiring itemizers to give more than 0.5% of AGI before claiming deductions. Standard filers will receive a new charitable deduction of $1,000 ($2,000 for joint filers). Donor Advised Funds (DAFs) allow immediate tax deductions for contributions of cash or appreciated assets and enable grants to qualified charities over time, with assets in DAFs able to grow tax-free. 2025 may be an optimal year to make larger gifts.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]