I want to share with you something of significant importance: Donations contributed this year could produce a much bigger tax-saving benefit than if you donate the same amount next year. It’s a win-win situation that many people do not know about, but I want to be sure you do.
For years, higher-income taxpayers have worried about their itemized deductions and personal exemption write-offs being phased out. Consequently, they haven’t received the full benefit of the most popular itemized deductions such as mortgage interest, state and local taxes, charitable contributions, and miscellaneous deductions. Thankfully, these “phase-out” rules have been getting phased out since 2006 as part of the “Bush tax cuts.”
The good news: For 2010, the phase-out rules are gone.
The bad news: It’s only a one-year reprieve. The rules are scheduled to reappear in 2011 as the Bush tax cuts expire.
This one year repeal could mean tax savings for you. For 2010, you may actually be able to write off all of your itemized deductions and personal exemptions.*
My wife and I set up the Nancy and Nyle Maxwell Family Fund at the Greater Round Rock Community Foundation and are very pleased with that decision. Through the Foundation, you can set up your own donor advised fund now, receive a charitable deduction now, and then work with the staff to choose what charitable causes to support on your own time.
I urge you to take advantage of this substantial opportunity and make your donations by midnight December 31st, 2010.
*Please talk with your tax adviser who will have more information about how this opportunity could benefit you personally.
I or Kami Barron, the Executive Director, are available to help you set up your own fund or answer questions today. The process is very simple and requires very little of your time.
T. Nyle Maxwell
Chair, Board of Governors