Tax Reform Update: Impact on Charitable Giving Strategies
Last year's heavily-debated versions of the Build Back Better Act called for tax increases that could have impacted charitable giving. But, as 2022 gets into full swing, the legislation that is eventually passed may bear little resemblance to earlier iterations. In particular, debate over the cap on the deductibility of state and local taxes (SALT) has illuminated a parallel debate over whether the changes to the cap would impact charitable giving. At the moment, though, tax increases to support President Biden's legislative agenda are still very much up in the air.
In other tax news, advocates for charitable organizations are lobbying lawmakers to bring back COVID-19-related tax incentives, including the $300 ($600 for joint filers) so-called "universal" charitable deduction.
Meanwhile, taxpayers may find themselves in limbo over timing decisions for their gifts to charity, as well as other tax-sensitive transactions, creating ongoing discussions with advisors about whether to pursue "bunching" strategies or instead to wait for more clarity on the legislative situation.
To learn more about creating custom giving strategies for your clients, contact Laura Lederer at 330-436-5611 or llederer@akroncf.org. We're always available to answer your questions about philanthropy or to schedule a personal consultation with you and your clients – all at no cost.
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This content is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.