As we approach the end of the year it is helpful to reflect on steps that can be taken to reduce taxes that otherwise would be due. When asset values are down, many advisors are reluctant to bring up charitable giving with their clients. They shouldn’t be. We had an extremely long bull market until recently. Many of your clients still have huge profits in the form of appreciated assets that will eventually be taxed if the right planning isn’t done.
While there always is talk of changes in the taxes applicable to individuals, little has changed this year, so far. After the Democrats’ “Build Back Better” legislative agenda seemed all but dead, a surprise change of heart by Senator Joe Manchin (D-WV) led to the passage of a slimmed down version of the bill named the “Inflation Reduction Act.” Significantly, the Inflation Reduction Act (Public Law 117-169) did not include many of the individual tax changes that the Biden Administration originally proposed and that were included in the various iterations of the House of Representative’s version of the Build Back Better Act. Nevertheless, the Inflation Reduction Act did include some tax incentives relevant to individuals.
The following are possible end-of-year planning ideas as well as the most significant legislative proposals that could affect individuals this year or beginning in 2023.
We also recommend that you monitor the legislative proposals below as they will be considered by Congress later this year. Should any significant legislation be approved, we will communicate those changes to you and provide suggestions for charitable giving.
As with any significant tax and charitable planning, you should always carefully consider potential changes in the context of your client’s complete financial profile. The Associated’s professionals are ready to work with you and your clients on ways to help maximize the financial and charitable benefits of any charitable planning strategies.
For more information, contact Jackie Yahr at 410-369-9248 or jyahr@associated.org.
This is for informational purposes only and should not be construed as legal, tax or financial advice. When considering gift planning strategies, you should always consult with your own legal and tax advisors.
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The Associated is a home for everyone in the Baltimore Jewish community. We offer several email lists to help people find a community, engage with their peers and support Jewish journeys around the world.
Join Our Mailing List