Trump Tax Plan Smacks Charity Deductions! I love sensational headlines… don’t you? I bet you are wondering what I’m talking about, because you have not heard a thing about charity deductions in the new GOP / Trump tax plan going into effect next year. But it is there!
Did you notice that there is a major increase in the standard deductions? Some estimates have said that 85% of tax filers will no longer need to bother with tax deductions when the plan is implemented. This means people that give to charities may no longer itemize and deduct those donations.
Now, I’m not trying to make a comment on greed, but human nature. If there is no longer an incentive to deduct, how many people will stop giving? At the least, people may just give less! I know I always give a bit more knowing that essentially 20% will be “paid” by Uncle Sam! Imagine if everyone just gave 20% less so they “break even”? This is how the Trump Tax Plan Smacks Charity Deductions! Oh, My!
There is one option, though it is short term and only helps one time. Front load your charitable deductions now. I mean right now, before the year is up. The “old” tax code is still in effect with the lower standard deductions. If you think you won’t make it next year, give today so you can deduct the donations on the tax for 2017. What are your average donations every year? Donate that now.
Here’s the self-serving part (hey I’m up front!). Joe DiMaggio Children’s Hospital is one of my favorite charities, and I have completed the 50K ride (http://tinyurl.com/y7qd6982) the last two years and will ride again this February. I already did my donation, and hope you can support my ride. I was going to donate in February, but I may not be able deduct that in 2018, so I did it now.
There are a ton of great charities from Equine Assisted Therapies (http://equineatsf.org/events/959-2/) to the St. Lawrence Chapel Shelter for the Homeless and Hungry (http://www.stlaurencechapel.org/), and we are proud to support both of those charities as well as the Joe DiMaggio Children’s Hospital.
Think you might lose that deduction, too? Why not give now?