By Guest Blogger, Joe Mastriani, CPA and Shareholder at Buckno Lisicky & Company
Individual taxpayers, who have two options when they file their personal federal income tax returns — take a standard deduction or itemize deductions — usually select the option that reduces their overall tax liability the most. Due to the recent tax law changes, the standard deduction available for taxpayers became much larger — almost twice what it was previously. This change makes it less likely that the sum of a taxpayer’s itemized deductions will exceed the larger standard deduction, especially with new limits in place on deductible state and local taxes (SALT, including real and personal property taxes, state and local income taxes, and sales taxes) and mortgage interest.
A potential side effect of fewer taxpayers itemizing their deductions is that these taxpayers may choose to reduce or eliminate charitable contributions to not-for-profit organizations because their contributions will no longer reduce their personal income taxes. What can donors do to retain the tax deductibility of donations?Read More