Tax Tip: Maximize Deductions with “Bunching”

Looking for a way to deduct your charitable gifts? If your annual giving is typically less than the standard deduction set out in last year’s Tax Cuts and Jobs Act, consider “bunching” the amount you would give over two years into one larger gift this year and make that gift to a donor-advised fund. Next year, take the standard deduction while saving for another gift the following year. If you put your donation into a donor-advised fund, you can draw upon it to make gifts to your favorite causes anytime you wish, so they can continue to benefit from your consistent support.
Opening a donor-advised fund is easy. Just click on this link to access and download the application or ask your financial advisor to contact us. You can submit your application as late as December 31, 2018 if you are making your initial deposit by check or credit card (mailed applications must be postmarked by the 31st).  If you are giving complex assets, you should start planning now to ensure funds are available to meet the end-of year-deadline.

Everyone’s tax situation is different and you should seek the advice of your own personal financial advisor before making any tax related decisions.