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Author Topic: Tax Reform Bill  (Read 348 times)

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je100

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Tax Reform Bill
« on: December 18, 2017, 10:55:57 am »

Forbes continues to offer great articles on the tax reform process.  Here is a pretty good rundown for several tax topics, which include the original proposal and the latest amendments to the proposal....

https://www.forbes.com/sites/kellyphillipserb/2017/12/15/its-beginning-to-look-a-lot-like-tax-reform-heres-whats-in-the-final-version/#7c59fe224d63
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HawgWild

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Re: Tax Reform Bill
« Reply #1 on: December 18, 2017, 11:50:17 am »

Thanks for posting. I'm curious to see what impact raising the Standard Deduction will have on charitable donations. With fewer people itemizing will they scale back on contributions?

Looks like no one was serious about addressing the 20% carried interest deduction.
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je100

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Re: Tax Reform Bill
« Reply #2 on: December 18, 2017, 01:48:09 pm »

Thanks for posting. I'm curious to see what impact raising the Standard Deduction will have on charitable donations. With fewer people itemizing will they scale back on contributions?

Looks like no one was serious about addressing the 20% carried interest deduction.

I bet there is some effect on contributions.  I think about 30% of taxpayers itemize.  So, I would think there at least would be an effect on those - which are probably the biggest givers as well.
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ricepig

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Re: Tax Reform Bill
« Reply #3 on: December 18, 2017, 01:53:58 pm »

I bet there is some effect on contributions.  I think about 30% of taxpayers itemize.  So, I would think there at least would be an effect on those - which are probably the biggest givers as well.

You can still take the deductions as long as you itemize.
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je100

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Re: Tax Reform Bill
« Reply #4 on: December 18, 2017, 02:55:22 pm »

You can still take the deductions as long as you itemize.

Right, but as HawgWild said, the standard deduction doubled.  So, there will be a lot less itemizing, going forward.  And since there's a lot less itemizing, there will likely be some less incentive contribute charitably.
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ricepig

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Re: Tax Reform Bill
« Reply #5 on: December 18, 2017, 02:57:42 pm »

Right, but as HawgWild said, the standard deduction doubled.  So, there will be a lot less itemizing, going forward.  And since there's a lot less itemizing, there will likely be some less incentive contribute charitably.

You said big givers, they generally will have more than $24,000 as a couple to itemize.
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je100

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Re: Tax Reform Bill
« Reply #6 on: December 18, 2017, 03:30:06 pm »

You said big givers, they generally will have more than $24,000 as a couple to itemize.

You're right.  I said it backwards.  The bigger the giver, the less interested he is in a $24,000 threshold.
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HawgWild

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Re: Tax Reform Bill
« Reply #7 on: December 18, 2017, 03:31:42 pm »

You said big givers, they generally will have more than $24,000 as a couple to itemize.

"Big" as in those giving a greater proportion of their AGI to charitable causes perhaps?  That's what I recall reading a few years back. 
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hog.goblin

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Re: Tax Reform Bill
« Reply #8 on: December 21, 2017, 01:58:08 am »

It will certainly effect giving to some degree, but many givers, especially those that tithe, don’t give for the sake of the tax deduction.  My experience has been that the bigger AGI/larger givers are the ones looking for the tax benefits.  And they’ll still have them.
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Vantage 8 dude

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Re: Tax Reform Bill
« Reply #9 on: December 21, 2017, 04:34:47 pm »

It will certainly effect giving to some degree, but many givers, especially those that tithe, don’t give for the sake of the tax deduction.  My experience has been that the bigger AGI/larger givers are the ones looking for the tax benefits.  And they’ll still have them.
Exactly my thoughts/attitude toward such. While any help on the taxes is nice, you give from the heart first and foremost because you want to give and help others and you believe in the organization(s) offering the assistance. All the rest IMO is pure "gravy".
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HawgWild

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Re: Tax Reform Bill
« Reply #10 on: December 22, 2017, 10:38:20 am »

It will certainly effect giving to some degree, but many givers, especially those that tithe, don’t give for the sake of the tax deduction.  My experience has been that the bigger AGI/larger givers are the ones looking for the tax benefits.  And they’ll still have them.
Exactly my thoughts/attitude toward such. While any help on the taxes is nice, you give from the heart first and foremost because you want to give and help others and you believe in the organization(s) offering the assistance. All the rest IMO is pure "gravy".

Pretty much what the RF is saying at the moment. Mark Rushing, UA spokesperson says:

"The increase in the standard deduction and the doubling of the estate exemption amount may have some impact on the tax advantages of giving but the vast majority of our donors give to support the mission of the University with tax benefits being a secondary consideration."

I've got to think that the charitable contribution has incentivized, to some degree. this behavior. Why else would there be a deduction? Time will tell.
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hog.goblin

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Re: Tax Reform Bill
« Reply #11 on: December 22, 2017, 01:57:25 pm »

Pretty much what the RF is saying at the moment. Mark Rushing, UA spokesperson says:

"The increase in the standard deduction and the doubling of the estate exemption amount may have some impact on the tax advantages of giving but the vast majority of our donors give to support the mission of the University with tax benefits being a secondary consideration."

I've got to think that the charitable contribution has incentivized, to some degree. this behavior. Why else would there be a deduction? Time will tell.

I talked with 2 donors today who are paying 3 years worth before 12/31z. For one it was $75,000 and the other it was $60,000.  Both said they may reconsider downgrading to outdoor club in year 4.
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HawgWild

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Re: Tax Reform Bill
« Reply #12 on: December 22, 2017, 02:14:42 pm »

If the Hogs can put a good team on the field/court then that would probably make the decision process easier.
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SardisHog

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Re: Tax Reform Bill
« Reply #13 on: December 22, 2017, 05:58:39 pm »

I read something that said with the new tax give twice as much every two years to get large enough to itemize.
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hog.goblin

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Re: Tax Reform Bill
« Reply #14 on: December 22, 2017, 07:24:39 pm »

I read something that said with the new tax give twice as much every two years to get large enough to itemize.

Yep, we do that quite a bit for retirees with solid net worth/modest income who give two years to their church every other year.  Arkansas taxes are low for most retirees so their total itemized barely exceeds the standard.  Year 1 they get nearly double the standard, year 2 the standard, start over again.
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