Tips on Giving After the Tax Bill

(source: University of Chicago Inquiry & Impact Campaign)

Whether you itemize or not, here are some of the best ways to give under the 2017 Tax Cuts and Jobs Act.

BUNCHING. Make larger gifts, less often, to exceed the standard deduction and maximize itemizing.

TIP: Made a pledge? Prepay it or reschedule your payments to be made in alternate years.

IRA. If you are 70 ½ or older, satisfy your required minimum distribution and reduce your taxable income by directing up to $100,000 from your IRA to a charity.

APPRECIATED STOCK. Avoid capital gains taxes by giving appreciated stock while stock markets are high.

REAL ESTATE. In the current housing market, save capital gains and other taxes by donating real estate or using it to fund a charitable remainder trust.

DONOR ADVISED FUND. Front-load giving for several years by making a tax-exempt charitable contribution to a DAF and distributing to a charity later.

TIP: DAF contributions can be made with cash, appreciated assets, or investments that have been held for at least a year.

RETIREMENT PLAN ASSETS. Avoid or reduce estate and income taxes by designating a charity as beneficiary of your retirement plan.

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