Foundation Source, a support organization for private foundations, is seeing a spike in inquiries about setting up a private foundation, probably because of the tax changes proposed by President-elect Donald Trump, the organization says.
“With the clock ticking down on 2016 and uncertainty surrounding the future of the charitable income tax deduction under the Trump administration, inquiries regarding private foundations from donors and their advisors have increased over previous years,” Foundation Source says.
“Existing foundations, attorneys, tax advisors and high-net-worth individuals are all concerned about the potential impact of President-elect Trump’s proposed tax reforms on their ability to maximize charitable income tax deductions,” says Susan Friedlander Calzone, Foundation Source CEO. “Faced with that uncertainty, many people who had been planning to step up their philanthropy in the next few years are accelerating those plans.”
President-elect Trump has called for capping itemized income tax deductions, including charitable deductions, at $100,000 for single taxpayers and $200,000 for married taxpayers filing jointly.
Currently, a donor may be eligible to receive an income tax deduction for any amount he or she contributes to a private foundation up to 30 percent of adjusted gross income.
In addition, his tax plan calls for lowering the top federal income tax rate, making 2016 potentially more attractive for taking deductions than it will be in the future.
The ability to make tax-free gifts from an estate to a private foundation may be eliminated, causing individuals to reassess their estate plans and consider giving more during their lifetimes, Foundation Source says.
No comments:
Post a Comment