Hello Katz - Here Are Your Articles for Thursday, November 29, 2018
Is this email not displaying correctly?
View it in your browser .
Website Industries Resources Services About Us Contact Us
Share Save

Charitable Giving Planning Options


With the increase in the standard deduction and the elimination and/or limitation of many of the itemized deductions, many taxpayers will find themselves claiming the standard deduction for the first time in years. This creates some planning opportunities around charitable giving, one of the remaining deductions allowed.

  • Taxpayers over age 70 ½ may want to consider a Qualified Charitable Distribution (QCD) from their IRA. QCD’s are allowed up to a maximum of $100,000 per taxpayer per year, and must be made directly from the IRA trustee to the charitable organization. Required minimum distributions are allowed as QCD’s, and those amounts are not includable in income. The lower AGI resulting from a QCD strategy has many possible benefits including lowering taxable Social Security benefits, larger deductions for medical expenses, and passive losses (up to $25,000) from rental real estate activities in which the taxpayer actively participates, lower net investment income tax, and lower Medicare Part B and prescription drug coverage premiums. For residents of Massachusetts, QCD’s are not included in Massachusetts taxable income.
  • Consider using a donor advised fund to bundle charitable deductions. Taxpayers who claim the standard deduction do not receive a tax benefit from their charitable donations. If you bundle multiple years of giving into a single year you may be able to itemize again and restore some of your charitable tax deduction. The tax deduction is claimed in the year the donation is made to the donor advised fund. The gifting from the donor advised fund to the charities can then be made of a number of years. 
  • Our long held advice to donate appreciated securities you have held long-term still stands. A charitable deduction is claimed for the fair market value of the securities, and the gain on the securities is not subject to tax. Consider pairing this planning advice with the bunching of securities via a donor advised fund.


Sandra Y Caterine, CPA, MST, is a Tax Principal at Katz, Nannis + Solomon, P.C. If you have any questions or would like to speak with one of our tax professionals, please contact our office at 781-453-8700.



Share Save

Your Comments

Katz Nannis + Solomon PC
Katz Nannis + Solomon PC
800 South Street Suite 250
Waltham, MA 02453
Connect with me on LinkedIn
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: bwright@knscpa.com

Mailing address: 800 South Street, Suite 250, Waltham, MA 02453