In December 2017, a major tax reform bill was signed into law. Some of its provisions may affect you and your charitable giving to Pardee Hospital through the Pardee Hospital Foundation.
One year into the new law, here’s what you should know:
- The amount of the standard deduction has been increased greatly at $12,000 for individuals and $24,000 for couples. The total of your itemized deductions, including charitable gifts, must exceed these amounts in order to be deductible. Please check with your tax advisor to understand your personal situation.
- Appreciated assets remain great options for giving. If you give long-term appreciated assets, like stocks, you could avoid capital gains taxes, which is separate from your income tax levels. By giving stocks or other appreciated assets, you could increase your contribution’s value and deductibility compared to giving cash.
- Some limits on deductions for charitable gifts have been increased. Cash gifts equal to 60% of your AGI could be deducted now (the old limit was 50%).
- Phase-outs for itemized deductions for higher income taxpayers were repealed, expanding deductions for those at higher income levels.
- No change to the IRA Qualified Charitable Distribution (QCD). If you will be 70 ½ by December 31, you could give up to $100,000 annually from your IRA directly to charity.
With these changes to the tax laws in mind, should you consider changing your giving plans? It depends on several factors: your current giving habits, age, income source and financial needs. Some factors to consider:
“Bundling” three to five years of gifts into one year. Instead of giving $1,000 annually for three years, you could give $3,000 in 2018, but no gifts in 2019 and 2020. Bundling allows you to support the Pardee Foundation while maximizing your charitable deductions for 2018.
Charitable gifts directly from your IRA. If you do not need the additional income that you are required to withdraw, you can work you with your IRA administrator to direct funds to Pardee Foundation. These funds, known as Qualified Charitable Deductions (from your IRA) are not tax deductible but they could lower your tax liability because they are considered as part of your required minimum distribution. These funds must come from your IRA administrator directly.
These statements are not intended to be used a financial or tax advice. You are strongly encouraged to consult with your financial or tax advisor for guidance.
Your support of Pardee UNC Health Care and the Pardee Foundation is greatly appreciated. As the only locally managed non-profit hospital in the region, we depend on your gifts to help us provide treatment and comfort to the sick while bringing advanced care close to home.
If you would like more information about how to give or how to designate your gift for a specific Pardee Hospital department or program, please call our office at 233-2700.