Spring ushers in so many great things: baseball season, blooming flowers, and baby animals. But, it also brings tax season (which can be a metaphorical rain cloud or rainbow depending on your personal situation). The Tax Cuts and Jobs Act, passed at the end of 2017, ushered in many federal changes that affect both estate planning and charitable giving. I’ve blogged about many of the provisions that can impact your estate planning (and why you should definitely review any existing estate plan), but what about some of the aspects of the new tax law that impact charitable giving? Because we’re not all tax attorneys or CPAs, let’s take this piece by piece and first explore the charitable deduction limitation increase for cash gifts and how it differs under federal and state law.
While federal law has made several modifications, Iowa has not conformed to most of the recent changes to the charitable contribution deduction for state tax purposes. Quite obviously, this can cause confusion when strategically calculating planned giving.
Under federal tax law, the charitable deduction limitation, specifically for cash contributions to certain public charities and private foundations, has increased from 50% to 60% of an individual’s adjusted gross income (AGI) for the year.
This increase does not apply for Iowa tax purposes, however. If an individual’s federal deduction for cash contributions to qualifying public charities and public foundations exceeds 50% of the taxpayer’s AGI for the year, the individual must recalculate the charitable deduction to apply the 50% limitation for Iowa purposes.
If this is still a bit confusing, fear not. We can work out a plan so that you can meet your charitable giving goals in a tax-beneficial way for the tax years moving forward. I offer a free, no-obligation consult, so don’t hesitate to contact me.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2019/03/Screen-Shot-2019-03-18-at-11.03.21-PM.png678983Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-03-18 23:04:542020-05-18 11:28:48Tax Talk: Federal & State Differences on the Charitable Deduction Limitation
1. If you understand #SelectionSunday, and #MarchMadness, you can most certainly understand estate planning.
When I meet people who say they’re confused about estate planning I love to see their faces when I tell them understanding the basics of wills, trusts, and even business succession planning may sound intimidating, but the basics are as simple as understanding NCAA March Madness. Seriously! Many folks know what teams are on the bubble, which teams were playing well at end of the season and which weren’t, what the most likely upsets are, and so on.
2. If you have time to fill out a March Madness bracket (and you do), you also have time to fill out an Estate Plan Questionnaire.
Most everyone I know fills out a March Madness bracket in a (mostly) friendly competition with family, friends, co-workers, or sometimes all three. If you have time to fill out a bracket, why not also put serious thought into securing your future with estate planning? No, I’m not trying to guilt you. It’s just, again, it’s not that hard! You can find my Estate Plan Questionnaire here. It’s a great place to start.
We all know that a huge part of the fun of NCAA March Madness is the upsets. The super thrilling and/or gut-wrenching endings that shouldn’t have happened, but somehow did. It’s a reminder that life, for better or worse, is quite unpredictable. Why not make sure that plans are in place in case something unexpected happens?
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/03/select.png342742Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2019-03-16 06:17:142020-05-18 11:28:483 Things #SelectionSunday Can Teach You About Estate Planning
Want to help make your favorite charity a winner? Encourage the charity to discuss the potential of charitable gifts of non-cash assets with donors. Donee charities can gain access to what has been called prospective donors’ “treasure chest” of non-cash assets. After all, the vast majority of a potential donor’s net worth will not be in cash, but in non-cash assets such as a home, retirement benefit plan, life insurance, etc.
Inspired by the start of NCAA March Madness, and the number of bracketed teams, here are 64 non-cash assets that could be used for charitable gifting.
Please note the alphabetized listing, I’m not recommending one gift over another, since so much depends on the individual circumstances of the donor.
Airplanes
Antique Automobiles
Antiques
Artwork
Assets held by C Corporation
Assets held by S Corporation
Autograph Books
Barn Doors
Beach House
Beanie Babies
Boats
Bonds
Books
C Corporation Stock
Coin collections
Comic books collection
Commercial and residential real estate
Condominiums
Credit Card Rebates
Depression-era Glass
Dolls
Enamelware
Equestrian Ribbons
Farmland
Gold Bullion
Grain
Guitars
Hedge Fund Carried Interest
Historic Papers
Installment Notes
Intellectual Property
Life Insurance
Limited Liability Partnerships
Livestock
Marbles
Mineral Rights
MLB Team
Mutual Funds
Oil and Gas Interests
Operating Partnership Units
Paint-by-number Landscapes
Painted Planks
Paintings
Patents
Photographs
Pooled Income Funds
Racehorses
Real estate
Restricted Stock (144 and 145)
Retained Life Estate
Retirement benefits
Royalties
S Corporation Stock
Sculpture
Sculpture Garden
Seat on New York Mercantile Stock Exchange
Seats at Events
Stamp Collection
Stocks
Tangible Personal Property
Taxidermy
Timber Deeds
Vacation Home
Vehicles
Pretty exhaustive list right? Like stamps and dolls, there are so many assets that you likely never even considered could be a charitable gift. And, that’s where I come in and can assist! If you’re a donor or donee nonprofit do not ever hesitate to contact me. I can always be reached at gordon@gordonfischerlawfirm.com and 515-371-6077.
Tax Talk: Federal & State Differences on the Charitable Deduction Limitation
Charitable GivingSpring ushers in so many great things: baseball season, blooming flowers, and baby animals. But, it also brings tax season (which can be a metaphorical rain cloud or rainbow depending on your personal situation). The Tax Cuts and Jobs Act, passed at the end of 2017, ushered in many federal changes that affect both estate planning and charitable giving. I’ve blogged about many of the provisions that can impact your estate planning (and why you should definitely review any existing estate plan), but what about some of the aspects of the new tax law that impact charitable giving? Because we’re not all tax attorneys or CPAs, let’s take this piece by piece and first explore the charitable deduction limitation increase for cash gifts and how it differs under federal and state law.
Differences Between Federal and State Tax Laws
While federal law has made several modifications, Iowa has not conformed to most of the recent changes to the charitable contribution deduction for state tax purposes. Quite obviously, this can cause confusion when strategically calculating planned giving.
Under federal tax law, the charitable deduction limitation, specifically for cash contributions to certain public charities and private foundations, has increased from 50% to 60% of an individual’s adjusted gross income (AGI) for the year.
This increase does not apply for Iowa tax purposes, however. If an individual’s federal deduction for cash contributions to qualifying public charities and public foundations exceeds 50% of the taxpayer’s AGI for the year, the individual must recalculate the charitable deduction to apply the 50% limitation for Iowa purposes.
If this is still a bit confusing, fear not. We can work out a plan so that you can meet your charitable giving goals in a tax-beneficial way for the tax years moving forward. I offer a free, no-obligation consult, so don’t hesitate to contact me.
3 Things #SelectionSunday Can Teach You About Estate Planning
Estates & Estate Planning, Events, Wills, Trusts & Estates1. If you understand #SelectionSunday, and #MarchMadness, you can most certainly understand estate planning.
When I meet people who say they’re confused about estate planning I love to see their faces when I tell them understanding the basics of wills, trusts, and even business succession planning may sound intimidating, but the basics are as simple as understanding NCAA March Madness. Seriously! Many folks know what teams are on the bubble, which teams were playing well at end of the season and which weren’t, what the most likely upsets are, and so on.
Just like all those details are a part of #SelectionSunday and #NCAAMarchMadness, there are multiple inputs that go into a quality estate plan. For starters, there are your personal goals, the six main estate planning documents, and then personal considerations for, say, children, a family with special needs, pets, and charitable bequests. Feel free to read into these estate plan elements (like you would check out the stats of your favorite teams!) in between sweating out your bracket. And, speaking of your bracket…
2. If you have time to fill out a March Madness bracket (and you do), you also have time to fill out an Estate Plan Questionnaire.
Most everyone I know fills out a March Madness bracket in a (mostly) friendly competition with family, friends, co-workers, or sometimes all three. If you have time to fill out a bracket, why not also put serious thought into securing your future with estate planning? No, I’m not trying to guilt you. It’s just, again, it’s not that hard! You can find my Estate Plan Questionnaire here. It’s a great place to start.
3. Weird stuff happens.
We all know that a huge part of the fun of NCAA March Madness is the upsets. The super thrilling and/or gut-wrenching endings that shouldn’t have happened, but somehow did. It’s a reminder that life, for better or worse, is quite unpredictable. Why not make sure that plans are in place in case something unexpected happens?
Want some more sports to legal analogies in your life? Check out this read on preparing your favorite nonprofit for top-notch compliance.
Regardless of who you’re slating to win it all, I would love to hear from you; let’s schedule an initial free one-hour consultation (at no obligation, of course). Email me at gordon@gordonfischerlawfirm.com or give me a call at 515-371-6077.
March Madness Inspired: 64 Charitable Gifts of Non-Cash Assets
Charitable Giving, Taxes & FinanceWant to help make your favorite charity a winner? Encourage the charity to discuss the potential of charitable gifts of non-cash assets with donors. Donee charities can gain access to what has been called prospective donors’ “treasure chest” of non-cash assets. After all, the vast majority of a potential donor’s net worth will not be in cash, but in non-cash assets such as a home, retirement benefit plan, life insurance, etc.
Inspired by the start of NCAA March Madness, and the number of bracketed teams, here are 64 non-cash assets that could be used for charitable gifting.
Please note the alphabetized listing, I’m not recommending one gift over another, since so much depends on the individual circumstances of the donor.
Pretty exhaustive list right? Like stamps and dolls, there are so many assets that you likely never even considered could be a charitable gift. And, that’s where I come in and can assist! If you’re a donor or donee nonprofit do not ever hesitate to contact me. I can always be reached at gordon@gordonfischerlawfirm.com and 515-371-6077.