The Atlanta Business Chronicle recently published a Viewpoint article written by Bennett Thrasher Partner and Tax Service Line Leader Jeff Call, titled “Year End Tax Plans Should Include a Look at Charitable Giving”. The article, published in the Financial Quarterly Special Section, examines how people can convert income tax liability into a charitable donation. Call explains in the article that charitable giving has increased the past few years because the 36.9 percent ordinary income tax rate has inspired many to investigate charitable giving rules. He explains that donations of cash to qualified charities are eligible to be deducted up to 50 percent of an individual's adjusted gross income (AGI). He also mentions utilizing a donor-advised fund strategy or setting up a private foundation as an alternative for people who want more direct engagement with their giving.
Call also discusses, “The recent turnover in control of the Senate may portend generous deductions and lower rates in the future.” Anticipated changes may not be effective until next year, but individuals may choose to defer a portion of their income to 2015 or accelerate deductions into 2014 to minimize their current year tax liability, depending on the actions taken by Congress in December. Click here to read the full article.
For more information on year-end charitable tax planning, please contact Jeff Call by calling 770.396.2200.