Hello Katz - Here Are Your Articles for Thursday, February 07, 2019
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Gift Wisely in 2019


While being charitable is a great quality and attribute that all of us should have within, your KN+S team members want to remind you that if done correctly, you can reduce your taxes even more than usual.

Here’s how:

  • Under the new TCJA law changes in 2018, unless you have $12,000 or $24,000 of itemized deductions, single and married filing jointly respectively, you will get that same amount (12k or 24k) in a standard deduction.  What this means is that if you are a taxpayer that no longer has interest expense on a home mortgage and get the limited $10,000 state and real estate tax deduction, you most likely will be getting a standard deduction off your Adjusted Gross Income.  So you won’t be itemizing. Taking the standard deduction means you will get no benefit for that year’s gifts.  As such, we encourage taxpayers to “bundle” their charity amounts for a few years into one particular year so you cross over that threshold and get some tax benefit for the donations you give.
  • The use of DAF’s or Donor Advised Funds is strongly encouraged by our KN+S tax advisors now. A contribution to a DAF allows you to get a tax deduction in the year of contribution to the fund without specifying a particular charity yet and giving the funds away. They are quite easy to set up (i.e. Fidelity or Vanguard) and maintain. Many of our clients are using DAFs to contribute several years’ worth of gifts and then over the next succeeding years, they make the nondeductible gifts to their charity of choice out of the Fund.
  • Whenever possible, consider gifting appreciated securities rather than cash to your DAF or charitable organization. The reason for this is simple-you get to deduct the appreciated fair market value as a tax deduction at the time of contribution, WITHOUT paying tax on the gain. A double win.  This should always be the currency of choice in donating.

Your KN+S tax professional is here to help should you have any questions. Feel free to reach out to us anytime at 781-453-8700.

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Katz Nannis + Solomon PC
Katz Nannis + Solomon PC
800 South Street Suite 250
Waltham, MA 02453
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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.
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