Kiwanis
Foundation Tax Planning
December 10, 2024
Kiwanis Foundation TAX PLANNING
1. Charitable Contributions limit: 60% of AGI for cash contributions and 30% of AGI for appreciated assets in 2024. Properly document “no goods or services provided”.
2. Qualified Charitable Distribution (QCD) – Up to $105,000 per spouse for 2024 RMD distributions directly to Charity for age 70 ½ and over. Increases to $108,000 per spouse in 2025
3. Donor Advised Funds: Excellent charitable “bunching” tool for charitable contributions of appreciated property. Perfect solution for windfall gains on cryptocurrency.
4. Charitable planning: CRUTS, CRATS, CLATS, GIFT ANNUITIES, RMD QUALIFIED ANNUITIES.
5. Gifts to people of $18,000 in 2024 and $19,000 in 2023. NOT tax deductible. Also ADD Tuition and Medical Expenses. Reduces estate tax and future income tax.
6. Estate Tax Exemption. $13,610,000 in 2023, $13,999,000 in 2024 ($14 MILLION). Will it go DOWN to about $7 million in 2026? No way Jose.
7. Harvesting losses at year-end to save taxes. Harvesting gains to offset capital losses.
8. Like- Kind Exchanges for real property still allowed.
9. Bonus Depreciation – Scales down from 100% to 80% for property “placed in service” after December 31, 2022 (2023) then to 60% in 2024 and 40% in 2025. 100% MAY be restored retroactively.
10. 179 Immediate Expense Deduction $1.220,000 in 2024 and $1,250,000 in 2025
11. CREDITS ABOUND INCLUDING HOME CREDIT OF $1,200 ANNUALLY PLUS OTHER HOME CREDITS WORTH $2,000 AND MORE. Electric Vehicle Credits, Research Credits (Repeal of Amortization) and many others. Dsireusa.org
12. Corporate Transparency Act Jan, 2025 = Texas Judge Amos Mazzant issues nationwide injunction! Way to go Amos!
December 10, 2024
Kiwanis Foundation TAX PLANNING
TRUMP TAX PROPOSALS
1. Eliminate Tax on Social Security
a. Alternatively: Reduce tax on Social Security by increasing tax thresholds ($25,000 AND $32,000 thresholds have not been increased for inflation in 40 years!)
2. Military & First Responders – Eliminate Tax
3. Tip Income – Eliminate income tax on tips. Alternative might be no tax on the first $10,000 of tip income.
4. Overtime pay– Eliminate income tax on Overtime pay.
5. MAINTAIN ESTATE TAX EXCLUSION LEVEL of nearly $14 million in 2025 and future inflation increases!
6. SALT CAP. Eliminate or Increase Salt CAP (LIKELY MODEST INCREASE from $10,000 to $20,000) Implement PET “Workaround” for tax planning.
7. $5,000 Child Credit & Tax Credit for family care givers
8. Interest Deduction allowed on USA Automobiles
9. Interest Deduction limit for business more generous
10. Tax Cut and Jobs Act of 2017 extended to 2026 and beyond.
a. Will 20% QBI deduction survive?
b. Will top income tax rate stay at 37% and not increase to 39.6%?
c. Will higher estate tax exclusion survive?
d. Will itemized deduction changes be extended?
11. Corporate tax reduction. Reduce Corporate tax from 21% to 20% and to 15% for USA manufacturers
12. Research Credit extended and no amortization required possibly retroactively
13. Bonus depreciation reinstated to 100% possibly retroactively
14. IRS Exams? Likely Decreased funding of IRS will decrease IRS exams. IRS Union endorsed the opposition!
15. Repeal Biden Inflation Reduction Act Tax Provisions mostly energy credits
16. Tariffs as political policy e.g. 60% on China
17. Heritage Foundation Project 2025 Proposals including taxes? 600 Pages.