TAX BRIEFING: Jeff Hamond and Robert Greenstein, tax experts from Washington, D.C. explain changes in tax law to trust donors. Photo by David L. Marcus/The Trust
OUR VIEW | By Marie D’Costa
At The Trust, we’re committed to giving you practical information so you can make a difference on the issues you care about. We’ve revamped our website to feature clearer information about giving as well as inspiring stories about our donors. Let us know what you think at email@example.com.
By the way, we know it’s confusing to understand the new legislation. Here’s a glimpse at what’s changed as the 2017 federal tax law takes effect:
- Most individual tax rates decrease: The maximum is now 37%, down from 39.6%.
- Adjusted Gross Income limit for cash charitable contributions rises to 60%, from 50%, retaining the five-year carryover.
- Corporate tax rates drop to 21%, from 35%, and the estate tax is now triggered at $11.2 million for individuals.
- Standard deduction increases to $12,000 for individuals, $24,000 for joint filers. Personal exemptions are eliminated.
- The new limit for itemized deductions for state and local taxes: $10,000.
What does this mean? Because of budget cuts and lower tax revenue, we expect government spending on social services to tighten, and nonprofits may need to rely more on charitable donations. We can help you with tax-smart strategies to ensure that your philanthropic priorities continue.
5 TIPS TO HELP YOU PLAN FOR THE FUTURE
- Use our free Document Inventory Toolkit for smart estate planning.
- Discuss your vision for a legacy with family members.
- Update essential documents annually, including your will or revocable trust.
- To ensure your estate plan fits your needs; Consult a professional advisor.
- Designate someone to take over any online accounts you may have, such as social media or banking.
For more information or our Document Inventory Toolkit, contact Marie D’Costa, our director of leadership and legacy giving, at (212) 686-2461. Or email firstname.lastname@example.org.
Learn more about giving through The New York Community Trust.