PG Calc Blog

The latest on planned giving from PG Calc.
Read our posts for comments on the latest topics and issues in planned giving. We hope you find our posts timely and interesting, and we hope you'll share your perspective with us!

Some Observations on the GOP Tax Reform Framework

Some Observations on the GOP Tax Reform Framework

The Republican leadership on Wednesday September 27, 2017 released a framework for proposed tax reforms for consideration by Congress.  While the framework proposes retaining the income tax charitable deduction, it also proposes nearly doubling the standard deduction.  Reducing the number of itemizers arguably reduces charitable contributions without the incentive of itemized charitable gifts.  Nonetheless, giving is motivated by more than just tax incentives.  It remains to be seen how decreasing the number of itemizers might affect charitable giving. 

Smart Giving and Tax Law Changes

Smart Giving and Tax Law Changes

The Trump administration has announced a tax plan for Congressional consideration.  The plan features reduction of personal and corporate income tax rates including taxes on pass-through business entities such as S corporations, compression of the number of tax brackets from seven to three and an increase in the standard deduction.  Personal income tax rates are reduced to 10%, 25%, and 35% brackets. This proposal eliminates the deduction for state and local income taxes but the income tax charitable deduction remains. 

Michigan Amendment Exempts Gift Annuity Payments From Withholding

As noted in the March eRate, Michigan  revised its tax law to provide for withholding of Michigan income taxes from pension and annuity payments, effective January 1, 2012.  While the revision did not specifically mention gift annuities, it did appear that in certain circumstances they could be subject to the withholding requirement. 

IRD Begets ITRD, the “Other Death Tax”

IRD Begets ITRD, the “Other Death Tax”

Last month I presented a Webinar on taxation basics for gift planners.  Somewhat to my own surprise, when I was preparing the accompanying paper, I found myself covering the topic of income in respect of a decedent (IRD) in the same section as the topic of estate taxes. It’s now several weeks later, and I remain convinced I made the right choice.