What is in the law that affects charitable giving?
  1. The charitable deduction will be retained. Some other itemized deductions will be eliminated or subject to limitations. State and local taxes will be deductible only up to a combined annual limit of $10,000. Deductions for mortgage interest will be limited to $750,000 of debt for those married filing jointly.
  2. The law increased the standard deduction to $12,000 for singles, $24,000 for married couples filing jointly, and $18,000 for heads of households. Your deductions (including your charitable deductions) will not reduce your income tax unless their total exceeds your applicable standard deduction amount.
  3. There is an increase in the adjusted gross income (AGI) limitation on charitable gifts of cash to public charities from 50% of AGI to 60% of AGI. The AGI limitation on charitable gifts of appreciated property to public charities will remain 30% of AGI. If you itemize, you will continue to be able to carry forward deductions subject to either limitation for up to five years.
  4. The gift tax, estate tax, and generation skipping tax will continue and estates will still be entitled to an unlimited estate tax deduction for charitable gifts. However, the exemption amounts for each of these taxes will double to $11.2 million per individual, ($22.4 million for gift and estate tax for married couples).
  5. The law repeals the 80% charitable deduction for gifts made in exchange for college athletic event seating rights.

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1. What is in the law that affects charitable giving?
2. How will the tax reform act affect you and your charitable giving?
3. What benefits can I receive without itemizing?