The American Taxpayer Relief Act of 2012 has changed the tax landscape. What are the opportunities for a person who wants to make charitable gifts in 2013?
- The charitable deduction remains in effect, with no cap on deductions. In the highest tax brackets, the tax savings from a charitable gift are greater now than they were in 2012.
- In January 2013 only, individuals over 70 ½ who took a distribution from their IRAs in December 2012 may make tax-advantaged charitable gifts from those distributions. A similar opportunity exists for people who wish to make additional 2012 gifts from their IRAs. These provisions are only in effect through January 31, 2013; please see here for more details.
- Individuals aged 70 ½ or older may make gifts – called “qualified charitable distributions” – of up to $100,000 directly from their IRAs to nonprofits in calendar year 2013. Please see here for more details.
- The capital gains rate for upper-income persons is higher than it was in 2012, providing a larger deduction on charitable gifts of appreciated assets.
The Community Foundation welcomes questions about your philanthropy, and encourages you to discuss your individual tax situation with your professional advisor.
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