Trump Tax Plans – Good, Bad, or Ugly for Charities?
Planned Giving Advisor Jonathan Gudema weighs in as follows:
- There will only be three income tax brackets: 12%, 25%, and 33%. Those currently in the 39.6% bracket (43.4% with the Obama care tax) will save a lot of money!
- Goodbye estate tax (we have seen this before – since tax cuts generally must be revenue neutral, we might see the same old hocus pocus to make it “work,” which usually means more business for estate planning attorneys).
- Lower capital gains rates for those currently at 18.8% (23.8% rates with Obama care tax): Not great for life income gifts like charitable remainder trusts.
- Cap the total amount of itemized deductions at $100,000 for single filers and $200,000 for joint filers (yikes: this could get interesting).
(Source: Gudema Planned Giving Advisors/The Planned Giving Blog)