Dave was recenty quoted in an article on CNBC regarding some tax savings ideas for 2018.
The new standard deduction has roughly doubled, taking it from $12,000 to $24,000 for a married couple. This means that fewer Americans will be itemizing their deductions going forward. It may be a good time to double-check your amount of withholding for the year so you aren't "caught by surprise" at the end of the year.
As we approach the end of the year, time is running out to make some adjustments that may reduce your tax burden. One strategy we have been discussing with clients is the idea of "bunching" your charitable gifts. If you are close to the itemized deduction threshhold, it may be beneficial to gift multiple years' worth of your contribution all at one time in order to receive a deduction for a portion of it.
Some other considerations for charitable gifts is to think about the method you are using for gifting. Gifting appreciated securities (if the organization you are contributing to has the ability to accept it) can have some tax advantages. Also, if you are currently taking required minimum distributions from your IRA, there are some solutions available for charitable rollovers that can also reduce your tax bill. Gifting in cash may not be the best method to use.
As always, consult your tax advisor before making changes regarding your tax planning strategies. If you have any questions, please feel free to contact us at 253-272-3441.