April 28, 2020 As the COVID-19 pandemic spreads across the globe, the poorest and most vulnerable members of society are being hardest hit and most likely will be the slowest to recover. They are in need of generosity now. And, while you may already be charitably inclined, the CARES Act provides enhanced tax savings advantages … Continued
The new tax law that went into effect this year changes many things, including the treatment of deductibility of state and local (property) taxes – the so-called SALT deductions. Prior to this year, taxpayers could deduct the full amount of these taxes from their Federal tax calculation. Beginning this year, that deductibility is capped at … Continued
For entrepreneurs and major stakeholders of Silicon Valley companies, a liquidity event puts in motion a series of complex and timely actions that investors must navigate, including potentially large tax bills to manage. For the philanthropically minded, one related tax-saving strategy worth exploring is the funding of a charitable vehicle. There are a handful of … Continued
Silicon Valley is home to countless entrepreneurs who have created significant wealth, all concentrated in a single stock with very low cost basis. These positions can be quite volatile and often do not generate much income, if at all. Also, by selling the shares, the individual is faced with what can be sizeable capital gains … Continued
It is estimated that the newly passed tax law could result in a reduction of billions of dollars in charitable giving starting this year. Although the long-standing charitable deduction methodology was preserved, overall giving could be significantly hindered due to the new higher standard deduction reducing the number of tax payers who itemize on their … Continued
Earmarking the family home — or some portion of it — to fund a Charitable Remainder Trust (CRT) can satisfy philanthropic intent, reduce personal taxes, and generate long-term income. For those with certain needs and desires — coupled with the right set of circumstances and capabilities — this approach could be a better alternative than … Continued
While parents without substantial resources tend to discuss family financial matters with children out of necessity, those with means often avoid the topic. However, even for parents who are in a position to cover all of their family’s financial needs and desires, the provision of an allowance can still be an effective way to have … Continued
With Republicans controlling both the White House and Congress, there is an increased likelihood of tax reform legislation hitting the debate floor. Proposals by President Trump and the House Ways and Means Committee appear to support the reduction of marginal tax rates and modification of itemized deductions which will mute the taxable benefits of gifting … Continued
Many families hold philanthropy as an important family value and strive to find ways to give efficiently, perhaps accomplishing additional objectives in the process. Investors, having lived with low interest rates for many years, are starting to see signs that rates may gradually rise. That begs a question: are there unique financial planning opportunities worth … Continued
One nice feature of the increasingly popular charitable vehicle called the donor-advised fund (DAF) is the ease with which it can be established and managed. An equally important attraction is the ability to accelerate charitable deductions into the year in which any gifts are made to the DAF, even though donors can defer any actual … Continued