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Charitable Giving and the CARES Act: 100% AGI Limitation, Donating Appreciated Property

CLATs and GRATs, Taking Advantage of Low IRS Section 7520 Interest Rates

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, July 28, 2020

Recorded event now available

This course will discuss recent changes to charitable contributions and explain how to maximize tax savings by making charitable gifts. Our panel of tax experts will discuss donating appreciated property, utilizing the 100% AGI limitation, and establishing a charitable lead annuity trust (CLAT), as well as other strategies for charity donations, considering the current economic environment.

Description

Myriad changes relative to charitable giving force practitioners to take a fresh look at giving strategies under the new paradigm. The 2017 tax act, the SECURE Act, and most recently, the CARES Act, all impact the benefits of charitable giving. Additionally, the state of the current economy has opened-up unique opportunities for charitable giving.

The 2017 tax law increased the adjusted gross income limitation from 50% to 60% for charitable donations. The CARES Act increased the limitation again to 100% for 2020. The prior restrictions on gifts of appreciated property (30%), however, remain in place, and contributions to donor-advised funds are subject to the old limit (60%). Knowing who benefits from the increased limitations and how to incorporate charitable carryforwards is key to maximizing the benefits of the increased limitation.

Some of the most beneficial strategies take advantage of the incredibly low Section 7520 rate (.8%, May 2020). This, coupled with the decrease in asset values, could make this the perfect time to establish a CLAT.

Listen as our charitable giving experts point how charitable giving can save significant tax dollars in the current economic environment.

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Outline

  1. Overview
  2. Recent Acts
    1. Tax Act of 2017
    2. SECURE Act
    3. CARES Act
  3. Qualified charitable distributions
  4. Donating appreciated property
  5. Utilizing the new AGI limitations
  6. Roth conversion with charitable offset
  7. Taking advantage of the 7520 rate
  8. Other charitable giving considerations

Benefits

The panel will discuss these and other pertinent issues:

  • The effects of recent tax acts on charitable giving
  • Combining a ROTH conversion with a charitable giving offset
  • Establishing a CLAT to maximize tax-free transfers
  • Considerations when utilizing the 100% AGI limitation

Faculty

LaBrecque, Leon
Leon LaBrecque, JD, CPA, CFP, CFA
Chief Growth Officer
Sequoia Financial Advisors

Mr. LaBrecque’s practice is focused on the cutting edge of a diverse range of planning tools, growth and wealth...  |  Read More

Laubacher, Don
Don Laubacher, CFP, CPA, AEP
Senior Vice President, Family Wealth
Sequoia Financial Advisors

Mr. Laubacher assists high net worth individuals, entrepreneurs, and multi-generational family businesses in sorting...  |  Read More