What To Do Right Away In Anticipation Of Coming Trump Tax Cuts
Generally, it is better to give appreciated property, but if you really want to put the pedal to the metal you will need to give some cash to get to the 50% of AGI limit. You might want to consider using a donor-advised fund which will allow you to spend more time deciding which specific charities to benefit. Also, some smaller charities don’t have the infrastructure to deal with large donations. The best-known donor-advised fund is probably the one run by Fidelity which has over $15 billion in assets. They explain the whole process pretty well. They are not the only alternative of course, but if you want to be picky about who you use, you should start looking into it now.
There has been some controversy about the effect that donor-advised funds are having on philanthropy. Apparently some people really like to see their charitable account growing and never get around to advising the fund to actually give anything to operating charities. All I can say is don’t be one of those people. In the situation, we are facing where your charitable deduction is likely worth much more on your 2016 return than it will be in the future the donor-advised fund is a very valuable tool.
IRS Can Sometimes Collect Corporate Tax From Former Shareholders
The shareholders of Little Salt were not alone in being caught by double taxation from a corporate asset sale. It seems that people not paying attention or thinking ahead in 1986 were legion. I shake my head and feel sad, but the people who founded MidCoast Investments, Inc. saw opportunity. They offered shareholders of companies a great deal. After the asset sale when all that was left in the company was money in the bank and an obligation to pay corporate income tax, they would buy the company from you.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.