How the New Tax Law May Impact You

How the New Tax Law May Impact You

The recent Tax Cuts and Jobs Act offers several smart charitable tax-wise opportunities. We’re here to answer any questions and to discuss the options to achieve your personal and philanthropic goals.

Every person’s tax situation is unique, so please do consult with your financial advisors.

Tax-Wise Giving Opportunities

IRA charitable distributions may provide income tax savings.

  • Making an immediate impact: For individuals 70½ years old or older, you can make a qualified charitable distribution from an IRA that allows you to donate up to $100,000 (or $200,000 for couples) from your retirement account to the American Lung Association. You can satisfy the required minimum distribution from your IRA while reducing your taxable income, even if you don’t itemize.
  • Create a legacy of fighting for clean air: You may name the American Lung Association as a beneficiary of all or part of a retirement account, while leaving less heavily taxed assets to your family.

Charitable gifts of appreciated stock or mutual funds are a smart tax strategy.

You may be able to save on taxes two ways when you donate them to the American Lung Association:

  • Avoid capital gains and investment taxes.
  • Enjoy a charitable income tax deduction.

Gifts through your donor-advised fund.

The new tax code will make donor-advised funds (DAF) a great tool for non-itemizers who wish to bundle their charitable gifts in one year (in order to get the tax deduction) while ensuring that the American Lung Association will continue to receive their annual support.

Learn more about giving through your DAF.

Opportunities to give that provide you guaranteed income and tax benefits.

  • Using appreciated property to fund a gift annuity or charitable remainder trust allows you to avoid capital gains taxes and receive income taxed at a more favorable rate.
  • The deductions from these gifts are usually more than the new standard deduction. If funded with cash, it may be deducted by up to 60 percent of your adjusted gross income.