Reynolds T. Cafferata provides comments to the IRS on the guidance regarding donor advised funds proposed in Notice 2017-73.
Both Donald Trump and Hillary Clinton say they are protecting the charitable deduction in their tax plans. Hillary Clinton initially proposed limiting the charitable deduction to the 28% tax rate even if the donor was in a higher bracket, but at the AFP Conference in March, she backed away from this proposal. Donald Trump excludes the charitable deduction from his cap on certain itemized deductions.Continue reading
At Rodriguez, Horii, Choi & Cafferata LLP we have been drafting more charitable remainder trusts in the last year than had been the case for the past decade or so. Three things are driving client interest in a charitable remainder trust.
First, as the economy continues to recover, clients have seen their assets appreciate significantly in value. Second, tax increases at the federal level and in the state of California have significantly increased the taxes that would be due on the sale of an appreciated asset. Third, many donors have been reaching an age where they are looking to convert appreciated assets such as real estate or closely held stock into income for retirement.Continue reading