A Few of the Finer Things - August 2018

How Will the Tax Cut and Jobs Act of 2017 Affect You?

This question has come up a lot over the past few months and the answer most of the time has been, “It depends.” One of our favorite resources for all things Washington related is Andy Friedman’s group, The Washington Update (available to “like” on Facebook or at @TheWashingtonUpdate on Twitter).

The white paper linked below is the simplest, yet most comprehensive we have seen on the subject and we would highlight two points:

1. Donor Advised Funds continue to be a very effective way to both be philanthropic and get a tax deduction for doing so. We have written in this space many times about the Raymond James Donor Advised Fund program and how easy and efficient it is to use.
2. If you are over 70 ½, donating to a 501c3 charity directly out of your IRA (up to a total of $100,000) is the most effective way to lower your taxable income and fulfill your philanthropic wishes. This is another strategy that many of our clients have employed and will no doubt become more popular after recent legislation.

The Washington Update’s conclusion sums things up very nicely: “Taxpayers might wish to reconsider whether it makes sense to incur deductible expenses, or to shift such expenses to other years, to minimize the taxes they pay under the new regime. Because individual circumstances differ, investors should discuss these techniques with their tax advisors before taking any action.”

While we ultimately defer to your tax advisors, we are here to assist in any way possible.

White Paper from The Washington Update

– Gary Weiss and Kelly Hughes, August 2018