Make the contribution now

If you are considering making a charitable contribution in the future, consideration should be given to accelerating that contribution into 2017 so as to secure the deduction thereby reducing current taxes. At this time we are unclear as to how charitable contributions will be treated under the tax bills currently making their way through Congress. Follow this scenario. If you lose your state and local tax deduction, your real estate tax deduction, you then are subject to the standard deduction of $24,000. Does that include your charitable contributions? If so, the contribution will not reduce your taxes to the extent the totality of your itemized deductions don’t exceed $24,000. So make the charitable contribution now.

-Keith Boyer, CPA