Lower Your Taxes with the New Tax Law
New this year!
For smart taxpayers, the new law provides easy opportunities to lower taxes even more.
Congress doubled the standard deduction to: $12,000 for single filers and $24,000 for married filers. Whether you typically itemize or take the standard deduction, there are some strategies you can use to receive new tax savings as well as other non‑tax benefits.
The most significant opportunity for you is probably the standard deduction.
It can be used instead of itemizing your deductions, where in the past you might have claimed a deduction for mortgage interest, state and local taxes and charitable giving.
Make an outright gift of an appreciated asset to charity. This strategy allows you to support the causes that matter most to you while generating a charitable tax deduction and potentially capital gains tax savings. This strategy provides tax benefits to itemizers and non‑itemizers.
Give from your pre‑tax assets by making an IRA rollover gift. If you are 70½ or older, this strategy allows you to give up to $100,000 directly from your IRA rather than take the required distribution from your IRA. This strategy does not result in a charitable deduction but will help you avoid tax on the distribution. This strategy works for both itemizers and non‑itemizers.
Fund a charitable gift annuity. Provides you with annual income, a charitable income tax deduction and potentially favorable capital gains treatment while allowing you to support the causes that matter most to you. Your specific benefits will be affected based on whether you itemize or take the standard deduction.
Elizabeth Kurila, Pacific Symphony’s planned giving expert, can help you take advantage of the new law to its fullest. You can reach her at email@example.com, or (714) 876-2374.