As 2020 comes to a close, donors may want to review the unique giving opportunities available through the CARES Act, which was put into law as part of the economic stimulus packages in response to COVID-19. Please contact your tax advisor to discuss how you might take advantage of related year-end planning considerations including:

  1. Temporary universal charitable deduction up to $300 – NEW in 2020
    This year, every tax payer is able to claim a special charitable deduction for cash gifts up to $300. This is available even if the donor claims the standard deduction and would otherwise not qualify to realize a charitable deduction for annual donations.
  2. Charitable donations direct from retirement accounts
    Donors are still able to make tax free Qualified Charitable Distributions direct to charity from IRAs or other retirement accounts even though the CARES Act has suspended the required minimum distribution rule from retirement accounts for 2020.
  3. Increased limit for charitable deduction
    The CARES Act now allows a donor to claim up to 100% of their Adjusted Gross Income in charitable deduction for cash gifts made this year. This is a great opportunity for those considering significant gifts in 2020 whereby otherwise they would be limited for certain types of gifts.
Scott Krowczyk

Scott Krowczyk, MBA, AIF®, Principal,
RSM US Wealth
Management LLC