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Charitable Alchemy —Turning Reduced Taxes Into Increased Tax-Favored GivingCharitable Alchemy —Turning Reduced Taxes Into Increased Tax-Favored Giving
Robert F. Sharpe, Jr. suggests ways clients can shift dollars saved from lower estate taxes to income tax savings and how the use of the charitable income tax deduction can restore and accelerate tax savings.
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As planners continue to study the provisions of the Tax Cuts and Jobs Act of 2017 (the Act), a number of techniques are surfacing that may be of interest to those who advise their clients on the technical aspects of their charitable giving.
In a nutshell, increases in standard deduction amounts in tandem with greatly expanded exemptions from federal estate taxes have the effect of reducing tax savings and increasing the after-tax cost of making gifts for a substantial number of taxpayers.
It’s now becoming clear that the generally positive impact of income and estate tax changes can be used to help mitigate the negative results insofar as charitable giving is concerned.
Let’s look at some ways that clients can make changes in their estate...
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