Paros Blog
We are closing in on the end of the year, and now is the time to finalize your charitable giving in 2020. With the help of The Paros Foundation friend and donor, Eric Nikssarian, CFP® a wealth advisor with EP Wealth Advisors, we were able to understand a few of the changes that only apply this year due to the CARES Act.
Here are a few things you should know…
- ABOVE THE LINE DEDUCTION: One of the rules that can directly affect your charitable giving is that you can donate up to $300 to The Paros Foundation or any bona fide 501(c)3 organization and deduct it above-the-line on your tax return in 2020 directly lowering your taxable income. This new rule is available for taxpayers who do not itemize deductions in 2020. *Please note this rule change is only in effect for 2020 and donations to a Donor Advised Fund do not count for this deduction
- NEW DEDUCTION LIMIT FOR INDIVIDUALS & CORPORATIONS: For those that are itemizing, charitable deduction limits have increased from 60% of adjusted gross income to 100% of adjusted gross income for 2020 only. Charitable deduction limits for corporations have also increased to 25% of their taxable income, up from 10% for 2020 only. *Please note: Donations made to Donor Advised Funds again do not count for this incentive. Be advised if you plan to donate property, securities, and other non-cash assets that they may not qualify. If donors give more than 100% of their AGI, that amount can be carried forward up to offset future income for up to five subsequent years.
- QUALIFIED CHARITABLE DISTRIBUTIONS: Required minimum distributions have been waived for 2020 in most cases. However, individuals who want to donate from their IRA can still make qualified charitable distributions to charities and avoid paying tax on the distribution.
The silver lining to these trying times is that we can still make a positive impact. If you have any questions about donations feel free to direct your questions to Peter Abajian, Executive Director of The Paros Foundation. If you’d like to contact Paros friend Eric Nikssarian, CFP® , a Wealth Advisor at EP Wealth Advisors, you can email him at enikssarian@epwealth.com
For more information, please feel free to visit the IRS website:
https://www.irs.gov/newsroom/how-the-cares-act-changes-deducting-charitable-contributions
Disclaimer: This article is not meant to provide tax advice or make promises on rebates. You should consult your tax professional regarding your specific tax situation. This article is not a solicitation to work with EP Wealth Advisors, LLC. Talk to your own financial advisor or tax professional for help regarding individual financial situations.
