Making Your Donations Tax Efficient
Did you spend a couple hours this past tax season digging up receipts only to find that you didn’t have enough deductions to itemize? You weren’t alone. Because of the near doubling of the standard deduction as a result of the Tax Cut and Jobs Act (TCJA), the number of households itemizing deductions went from 47 million in 2017 down to an estimated 18 million for 2018.
Are you in a position where you’re no longer able to deduct your donations? There may still be a way you can give to your favorite charities and be rewarded by the IRS.
I’ll discuss a couple of common strategies that I find many people still aren’t aware of. Along with those, I’ll share an alternative, that, while not necessarily providing a tax deduction, can still net you a financial benefit. Of course, before taking any action that may affect your financial situation, discuss it with your tax professional and financial advisor.
Strategies:
- Qualified Charitable Distributions
- Bunching Donations
- Rewarding Alternatives
To read the entire article, visit http://ataraxiaadvisory.com/tax-efficient-donations-under-the-new-tax-law/
Article by Mike Jones, owner of Ataraxia Advisory Services & New River Land Trust Board Member
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