If you missed either of the first two parts of this three part series on tax-efficient giving strategies, check them out here:  Part 1  Part 2 As mentioned in the first two parts of this series, recent tax reform is significantly reducing the number of people who will recognize a tax benefit when making charitable contributions in 2018 and beyond.  This is because many people will find that the now-higher standard deduction will be greater than the sum of their now-limited itemized deductions.  If this sounds like you, keep reading to learn how a donor advised fund may help you recognize a tax benefit when giving to your favorite charity. A donor advised fund account is a simple, tax-smart investment solution for charitable giving.  Despite its name, it’s not something that only those featured on “Lifestyles of the Rich and Famous” have access to.  This is a tool that middle class America...

If you missed the first installment of my three-part series on efficient giving strategies, you can read it here:  Part 1.  Once you are up-to-speed, keep reading here to learn about an absolute home run of a giving strategy for those who have an IRA and are at least 70 ½ years old. As mentioned in Part 1 of this series, recent tax reform is going to significantly reduce the number of people that itemize their tax deductions.  This means that many people who donate money to qualified charities will no longer be able to recognize the tax benefit of their gift.  If you fall into this camp, have an IRA, and are at least age 70.5, then you should consider the advantages of a Qualified Charitable Distribution (QCD). A QCD is achieved when you distribute money from your IRA or inherited IRA to a public charity.  The donor must be at least...

The Tax Cuts and Jobs Act (TCJA) passed in December 2017 is the largest overhaul to tax law in over 30 years.  Tax experts and the IRS are still sorting out all of its implications and how to apply the new law, but it is clear the TCJA will have a significant impact on taxation of both individuals and businesses. Due to the effective doubling of the standard deduction and the elimination of many popular itemized deductions, The TCJA has reduced tax incentives for making charitable donations for many people.  Over my next few blogs I am going to explain the basics of three strategies that we are using much more often when discussing charitable gifting with our clients here at Level Financial Advisors.  These strategies all have unique benefits over simply gifting cash. Gifting of Long Term Appreciated Property One of the first tax-saving strategies we consider when we find out a...

While driving around the city I live in, I often see a particular license plate frame from a local car dealership that boasts the tagline “We worked it out!”  Every time I see those words on the rear of a vehicle, I find myself wondering if that is the best way to market yourself.  The tagline implies that there is conflict when dealing with that car dealership; which is not something I would want to advertise if I was in the business of selling cars. Maybe I should give that dealership more credit, because, let’s be honest, we all expect at least some conflict during the car buying process.  This is primarily because we understand that the car salesperson has one overarching goal, to maximize their profit, not yours. Similarly, many financial consumers mistakenly think their advisor is working for them, when in reality they are very much working for themselves.  Financial...

The vast majority of American taxpayers are about to experience a rare event; their paychecks are most likely getting larger in 2018, even if their salaries haven’t changed.  This is because the Tax Cuts and Job Act (TCJA) passed in December comes with a slew of once-every-few-decades tax law changes, including lower tax rates for most individuals.  The IRS, every accountant in America, and employers, are scrambling to adjust to the new tax law. One adjustment that has to be made and must be in place for all employers by February 15th is utilizing new withholding tables for paychecks.  These tables dictate how much tax your employers or payroll providers must hold back from each paycheck you receive.  Because tax rates under the TCJA are lower, most individuals will experience lower amounts of tax withheld from their paychecks.  This means that you should expect your take home pay to increase when...