Posted In: Business Transactions & Corporate Counseling, Trusts & Estates & Coronavirus Resource Page
By Lori R. Kilpeck on December 18, 2020
Trusts & Estates partner Lori Kilpeck provides three year-end considerations for your charitable gifts.
As this unprecedented year comes to a close, the holidays will undoubtedly be different for each and every one of us as we discover new ways to celebrate the joy of the holiday season with family and friends. This time of year, and particularly 2020, also brings to light a few questions regarding year-end gifting options. A few pointers that you may be able to utilize when thinking of your loved ones and favorite charities in 2020 are provided below:
- There is still time prior to the end of the year to consider gifting tax-free up to $15,000.00 to any number of individuals without the necessity of filing a gift tax return or reducing your lifetime gifting exemption.
- The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides a $300 deduction for cash gifts made to a public charity even if you do not itemize and use the standard deduction on your tax returns for 2020.
- You may also be able to reduce your taxable income by deducting a cash gift to a public charity up to 100% of your adjusted gross income (AGI) for 2020 due to the CARES Act, instead of the usual 60% limitation.
As we close out 2020, it is not too late to consider taking advantage of the above gifting options or provisions provided in the CARES Act.
We wish you a happy holiday season and healthy new year!
This blog is intended to provide information generally and to identify general legal requirements. It is not intended as a form of, or as a substitute for legal advice. Such advice should always come from in-house or retained counsel. Moreover, if this Blog in any way seems to contradict advice of counsel, counsel's opinion should control over anything written herein. No attorney client relationship is created or implied by this Blog. © 2021 Brouse McDowell. All rights reserved.