Charitable Tax Deductions and the “Fiscal Cliff”

12/12/12

Calendar year-end giving is always a busy time for development. We typically receive about about 30% of our annual gifts during the month of December. This year we expect to be particularly busy with the recent developments in Washington.

There are daily rumblings about what Congress could possibly accomplish in the lame duck session between now and year end to prevent the economy from falling off the impending “fiscal cliff,” (the expiration of numerous favorable tax provisions at the end of 2012).

While no one has a clear vision of what is likely to be decided during the lame duck session, we do know that we are likely to see a lower charitable income tax deduction for high income earners in the years following 2012. We can surmise that we are unlikely to experience as favorable an environment for making significant charitable donations as we see today.

As a result, we suggest that you may want to consider discussing the gifts you wish to make to Wake Forest University and what tax benefit you may wish to achieve this year with your wealth planning and legal specialists to determine whether it is appropriate for your specific tax situation to make a gift or finish paying a pledge by year end.

Please contact our staff if you would like to discuss your particular situation in more detail. As always, we appreciate your support of the Deacon Club and Wake Forest Athletics.

Barry Faircloth

 

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