IRS Announces Tax Schedules, Exemptions, and QCD Limits for 2025

Many federal tax items are indexed annually for inflation, such as the income tax brackets for individuals and trusts, the standard deduction, the gift and estate tax exemption, and qualified charitable distribution (QCD) limits. The IRS recently announced what the new amounts will be for all 63 of these items in 2025. The new values will increase about 2.8% over the 2024 values they will replace. All of these changes are minor and should have little effect on the tax incentives that encourage donors to make charitable gifts.

Questions to Ask Before Accepting an International Gift

I have a friend, a veterinarian, who told me that one of the first things she was taught about cats is that they are not small dogs. Even though both are companion animals, the similarities between cats and dogs are only fur deep. This anecdote came to mind last month when discussing the challenges of negotiating life income gifts from donors abroad. Because outright gifts to charity are universal, and bequests to charity nearly so, it is tempting to think that split-interest agreements, like charitable gift annuities, charitable trusts, and pooled income funds, are just as ubiquitous. Think again. Among the nearly 200 countries on the planet, only a few have charitable gift opportunities similar to American charitable gift annuities and charitable trusts. Even when split-interest gift arrangements are allowed, there can still be striking differences. For instance, Canada offers immediate charitable gift annuities but does not allow donors deferred gift annuities or flexible gift...

From the IRS: Donors Can Give More and Pay Less in 2024

The IRS has announced increases in tax exemptions, qualified charitable distribution (QCD) gift limits, and standard deductions for 2024. Gift planners will want to pay particular attention to how these changes impact their donors.

A Deduction for Non-Itemizers? Not so fast.

Non-itemizers would be able to take advantage of an expanded charitable deduction under a bill introduced by Senator James Lankford (R-OK). “The Charitable Act” (S.566) would permit those who elect the Standard Deduction to claim an additional charitable deduction up to one-third of the Standard Deduction amount for two years only, 2023 and 2024. This year, one-third of the Standard Deduction for a married couple filing jointly is a little over $9,200. It is half that for a single filer. The Bill, which has ten bipartisan co-sponsors, has been referred to the Senate Finance Committee. There is no companion legislation in the House of Representatives.