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!

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IRS Announces Indexed Tax Items for 2022

IRS Announces Indexed Tax Items for 2022

The IRS has announced the values for 2022 of various tax items that are indexed annually for inflation. In general, values have been adjusted upward about 3.0%. Of particular interest to gift planners, the unified gift and estate tax exemption amount will be $12,060,000 ($24,120,000 per couple) in 2022, an increase from $11,700,000 ($23,400,000 per couple). For the first time since 2018, the annual gift tax exclusion will also increase, from $15,000 per person this year to $16,000 per person next year. Also of interest, the standard deduction in 2022 will increase to $25,900 for married couples filing jointly and to $12,950 for single filers, an increase of $800 and $400, respectively. Taxpayers who are 65 or older will qualify for an additional $1,400 in standard deduction on top of that (an additional $1,750 if single and not a surviving spouse). See Revenue Procedure 2021-45 (https://www.irs.gov/pub/irs-drop/rp-20-45.pdf) for complete details, including all federal income tax schedules for 2022.

The Infrastructure Bill … Nothing to See Here for Charities

The Infrastructure Bill … Nothing to See Here for Charities

Late last Friday, with bipartisan support, the House of Representatives passed the “Infrastructure Investment and Jobs Act” (HR 3684). What is the impact on charitable gift planning and year end giving? Not much. While there is much good for the country expected from it, the bill includes almost no tax changes, only one of which is even tangentially related to charitable giving: a provision requiring additional reporting for cryptocurrency transactions beginning in 2024.

Tax Implications of the Infrastructure Bills: Keep Calm and Carry On

Tax Implications of the Infrastructure Bills: Keep Calm and Carry On

At best, the current status of tax legislation is confused. There are two major pieces of legislation making their way through the process. Although they are distinctly separate bills, they are inextricably linked to one another. Each proposes different changes to tax law, and, even worse, the word “infrastructure” has been used, loosely, to describe both of them. Making matters even more confusing, the path forward in the U.S. Senate involves two procedural rules that are anything but intuitive. Confusion is never good for donors, so let’s break it down… but if you’d rather duck the policy wonk stuff, skip to the end for some thoughts about communicating with donors this year-end.

$1.9 Trillion American Rescue Plan Will Affect Giving Only Indirectly

$1.9 Trillion American Rescue Plan Will Affect Giving Only Indirectly

Last week, President Biden signed the American Rescue Plan (ARP), a $1.9 trillion package of initiatives aimed at facilitating the U.S.’s recovery from the health and economic effects of the COVID-19 pandemic. The ARP provides economic assistance to individuals in a variety of ways, primarily to Americans making less than $75,000/year (or couples making less than $150,000/year). It also extends the Paycheck Protection Program for businesses, creates block grants to help schools reopen and expand childcare, provides aid to state and local government, and much more.

Implications of the Consolidated Appropriations Act, 2021

Yesterday, President Trump signed into law the Consolidated Appropriations Act, 2021, which will provide $900 billion in coronavirus relief and $1.4 trillion to continue to fund the government. The legislation covers a lot of territory and clocks in at over 5,500 pages. Because of the delay in passage and further delay in signing, there is little time before 2020 ends for donors to ask what will be extended and what will be changed for 2021. Below is our reporting of a few key provisions in this law that will impact fundraisers and donors.

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