I have a Fidelity Charitable account that I funded a number of years ago with some appreciated stock to avoid the capital gains tax
With the change in tax laws where you have to itemize, I haven't funded any additional contributions and have just been making my charitable donations out of the fund each year, but now I am basically out of money in that DAF.
I plan to donate some more appreciated mutual fund shares rather than cash. What I am wrestling with is how much? As the standard tax deduction is freakin $29,200 now, if I add $50,000 to the Donor Fund it's like I'm only getting $20,000 of "true benefit" on my taxes right? (because anyone can get $29,200 for doing nothing) Or I guess since I would then have the $10,000 capped State and Local (SALT) taxes it's like $30,000. So if I add even more, then it's like I'm taking more advantage of the tax deduction in this one year. I know it depends on how much I want to fund into that Donor Fund at any given time, but the fact that one can't write off charitable deductions without itemizing while the standard deduction is pretty large too, is frustrating!
With the change in tax laws where you have to itemize, I haven't funded any additional contributions and have just been making my charitable donations out of the fund each year, but now I am basically out of money in that DAF.
I plan to donate some more appreciated mutual fund shares rather than cash. What I am wrestling with is how much? As the standard tax deduction is freakin $29,200 now, if I add $50,000 to the Donor Fund it's like I'm only getting $20,000 of "true benefit" on my taxes right? (because anyone can get $29,200 for doing nothing) Or I guess since I would then have the $10,000 capped State and Local (SALT) taxes it's like $30,000. So if I add even more, then it's like I'm taking more advantage of the tax deduction in this one year. I know it depends on how much I want to fund into that Donor Fund at any given time, but the fact that one can't write off charitable deductions without itemizing while the standard deduction is pretty large too, is frustrating!
Statistics: Posted by Hogan773 — Tue Mar 05, 2024 9:41 pm — Replies 6 — Views 558
