The word I am hearing from professional advisors and others involved with stock is that it’s not the time to sell, even though the market is high, because the tax situation may be better next year. That is certainly good advice.
Along the same lines, now is definitely the time to accelerate deductions to take advantage of our “known” tax rules in 2017. Property taxes can only be paid so far in advance, and we can’t accelerate mortgage interest, BUT, we can make a larger charitable gift this year, to capture that big deduction, and take advantage of our historically high stock valuations.
It may also happen that the carry forward of charitable gift deductions is reduced slightly by the doubling of the standard minimum deduction. If you’re not maxing out the current year, and you are charitable, you may be able to save thousands in taxes by making your gift before the end of this year. I really don’t mind paying my taxes, but if the government offers certain tax benefits to encourage and reward charity, I think it would be a shame not to use them.
It is December and there is limited time to act. Yes, I am paying my 2018 property taxes this month, and making a much larger charitable gift this December than I typically would. The idea of saving 28% of every dollar I pay early on deductible expenses is incredibly attractive. No matter what happens with our tax code next year, this will help save taxes this year.
Please consult your tax advisor while there is still time. If you get down to the last few days of the year and wish to establish a charitable fund with appreciated stock at the Community Foundation of Western Nevada give me a call. You will receive a larger charitable gift deduction that may, perhaps, satisfy your charitable giving plans for years to come. We can set up your fund in minutes.
Thank you for referring charitable friends or clients. We work clients to help them receive the benefits from giving to which they are entitled. Giving makes us feel good, it helps other people, it is the right thing to do, but saving on taxes doesn’t feel too bad either. If we can help, please give us a call at
775-333-5499. Completing this activity this month will add to your holiday cheer.
Chris Askin, President, and CEO
Connecting people who care with causes that matter