According to tax experts at Barnabas Foundation, CBE’s planned giving partner, now is the time to take advantage of tax-wise opportunities for 2017. Here are their recommendations:
Sweeping federal tax reform is likely to be passed that will:
- Increase the standard deduction for all taxpayers
- Reduce tax rates for higher income earners
- Reduce the number of itemized deductions available
- Eliminate the federal estate tax or significantly reduce the number of taxpayers subject to it
There will be multiple implications as you contemplate charitable giving options and goals in the next year. In the meantime…
The new tax law has created a short-term opportunity that you may wish to consider before the end of the year. You must take action prior to December 31, 2017 to reap the benefits!
How to determine if this opportunity is for you:
- Do you expect to itemize your charitable deductions in 2017?
- Will your itemized deductions in 2018 be less than $12,000 ($24,000 per couple)?
- Will your income or income tax rate be lower in 2018?
- Do you have several ministries you support throughout the year?
- Do you respond to ministry needs when you hear about them?
If you answered “yes” to any of these questions, you may benefit from taking immediate action:
- Double up your charitable giving this year to maximize your tax benefit. Calculate what you expect to give in 2018 and then include it with your 2017 year-end giving.
- Set up a donor-advised fund with Barnabas Foundation, if you don’t already have one. By making one large gift to a donor-advised fund, you can receive a charitable deduction in 2017 and make grants this year and throughout the coming year to ministries you want to support.
- Make your gift with stock or real estate that has grown in value. This will further increase the tax benefits of your gift.
- Make early payments on other expenses that you are able to deduct this year. For example, you could prepay your state income taxes.
If you believe this opportunity may benefit you, consult your tax advisor.
For more details on setting up a donor-advised fund or other giving options, contact Barnabas Foundation at 888-448-3040 or email info@BarnabasFoundation.com.
