Charitable Deduction Remains Intact

Throughout 2012, a number of proposals were made to limit the amount or value of charitable deductions.  Some suggested a cap on the amount of deductions that could be claimed regardless of one’s tax bracket.  There was a proposal limiting the value of deductions to the 28% tax bracket, which would result in those in higher tax brackets being subject to tax on amounts given to charity.  The effect would be to increase the amount of pre-tax income required to make charitable gifts.

Fortunately, the legislation as passed does not address the tax deductibility of gifts.