Articles Tagged with capital gains

Published on:

black-29972_150On December 22, 2017, President Trump signed a bill that makes huge changes to the American tax system—including the estate and gift tax. As of 2018, individuals can give away up to $11.2 million free of estate and gift tax, and couples can combine that to give away up to $22.4 million! These exemptions are indexed to inflation and scheduled to revert back to 2017 levels in 2026 (unless Congress extends them or makes them permanent at that point).

This sounds like big news, but, to tell the truth, there’s no benefit to most of us. Less than 1% of Americans were subject to the estate tax under the old law–now even fewer of them are. The Joint Committee on Taxation now estimates that there will be only 1800 taxable estates (in the ENTIRE COUNTRY) in 2018, compared to 5,000 under the previous law, and 52,000 in 2000, when the exemption was $675,000.

So, what does that mean for most of us? It means that estate planning isn’t really about minimizing the estate or gift tax any longer. (And it hasn’t been since 2012 for those with $5 million or less.) But that doesn’t mean you don’t need an estate plan.

Published on:

giveAs the year draws to a close, now is the time to consider making charitable gifts, both because it’s a good thing to do and because year-end charitable gifts will provide tax deductions.

In addition to the time-tested check writing method, here are three other ways that you can give that are less obvious and quite beneficial.

  1. Consider opening up a Donor Advised Fund. You can open up a Donor Advised Fund in 2015 and get a charitable deduction for that gift by year’s end. But, you can make recommendations on how those funds should be spent in 2016 or after.  Donor Advised Funds are a great strategy when you need the charitable deduction right away, but haven’t had time to research the charities that you want to support. You can open up Donor Advised Funds at large financial institutions like Schwab and Fidelity and Vanguard and also at community foundations like our very own Silicon Valley Community Foundation.