While it still feels like summer, it is hard to believe that the end of the year is rapidly approaching. There remains a lot of uncertainty regarding the status of charitable giving in the tax code after December 31, 2012.
At The Community Foundation, we want our donors to be aware of several philanthropically advantageous tax strategies that will expire at the end of this calendar year, if Congress does not act to extend current tax laws.
If Congress does nothing:
- The charitable deduction, as well as other itemized deductions for high income taxpayers, will be limited - with the potential to strip away up to 80% of the value of a taxpayer’s itemized deductions. Other actions being considered include eliminating the charitable deduction entirely.
- The estate and gift tax exemption will return to pre-2001 rates of $1 million. The exemption is currently at an unprecedented amount of over $5 million per spouse (over $10 million per couple). Additionally, interest rates are at record lows. This allows for great flexibility in the transfer of wealth to other generations and for financially advantageous estate planning.
- If you have not already done so, I urge you to speak to your financial and/or estate planning advisors to see if you could benefit from current tax laws.
As always, please contact your Philanthropic Advisor (Audrey Jacobs, Barrett Krise, Erin Drury or Rob Smulian) for assistance in gifting or grant making as the end of the year gets closer. Our Director of Gift Planning, Christy Eckoff, is also available to assist you and your advisors with input for charitable tax planning including gifts of real estate, privately-held assets or other tangible assets.
Thank you for your continued commitment to philanthropy. Best wishes for a busy, productive and safe fall season.