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PostWill New US Tax Law Lead to Fewer Donations? From Ric Mauricio (John Eipper, USA, 01/04/18 10:27 am)
Ric Mauricio writes:
To answer John E's question, yes, the Trump tax law may indeed de-incentivize charitable contributions. In my personal case, I really don't care. I give because I want to give, not because of the tax advantage.
But here is a little tax trick for many of you who can no longer deduct your charitable contributions:
Attribute your deduction to your business. But be careful. Only C Corps can make deductible charitable contributions. All others must deduct it on their Schedule A, so if you don't itemize, you cannot write it off. But, here's the trick. In exchange for the donation, you get some kind of mention or advertising in return for your donation to the organization, you can express this as a marketing cost and thus expense it.
JE comments: Ric Mauricio is a Tax God! (How 'bout that for advertising, Ric?)
One thing is clear: the new tax code will not incentivize charitable giving. Although if you donate over $24K a year, then yes, you can deduct everything. Those negatively affected will be the standard deduction folks who give a few hundred here and there.
It's no secret that I see nothing good in anything Trump has ever done, but haven't we identified yet another way the new tax code hurts the middle class?