Is your NCAA bracket busted? Mine sure is – I’d hoped the three Iowa teams would have more success.
But all the talk about brackets made me think about a common misunderstanding about tax brackets.
Pop Quiz: If you are in the 25% tax bracket, does that mean your gross income is taxed at 25%? No. But this seems to be a common misunderstanding.
There are seven federal income tax brackets: 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
Let’s say you are a single taxpayer who earns $35,000 per year. The first $9,075 of your income is taxed at 10%, and the remaining $25,925 is taxed at 15%. The higher your income, the more tax brackets you pass through. Taxpayers with high taxable income can pay up to seven different rates.
Understanding basics about tax brackets, and the tax code generally, can make a huge difference when it comes to charitable giving.
Smart charitable giving almost always means smart charitable giving tax strategy. About this huge, and hugely important topic, much more soon.
This short article is presented for informational purposes only, not as tax advice or legal advice. Consult a tax professional for personal advice.
Gordon Fischer Law Firm, P.C. is dedicated to promoting and maximizing charitable giving in Iowa. Gordon can be reached by phone at 515-371-6077; by email at firstname.lastname@example.org; and through his website at www.gordonfischerlawfirm.com.
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The March/April edition of The Iowa Lawyer features an article by Gordon Fischer about charitable giving the smart way.
To see, click right here:
Read now, and please share with me your comments!
Will the story of Prince Farming have a fairytale ending?
ABC’s The Bachelor, Season 19, is coming to a close. On tonight’s finale, Chris Soules, the dreamy farmer from beautiful Arlington, Iowa, will choose between Whitney and Becca. Who will get the final rose? Whitney says she loves Chris, but does she really want to give up the big city and successful nursing career for life on the farm? And does Becca have enough real-life experience to take the next step with Chris? The chiropractic assistant revealed she’s never been in love.
Please don’t judge.
Sure, I have better things to do with my time than watch reality TV. But, I’m a sucker for watching Iowans on the national stage. And, setting aside the predictable formula and questionable premise of finding true love through competition, there’s no denying the show revealed Des Moines to be a happening urban center and rural northeast Iowa a pastoral wonder, which has been fun to see. So this year, I admit I’ve not only watched The Bachelor regularly, I’ve even followed its drama online and embarrassed myself asking friends if they are “Team Whitney” or “Team Becca.” And I can say for certain what Prince Farming should do.
The path for Chris Soules is clear
Chris and whoever he chooses to share his life on the farm can deepen their love by embracing charitable giving. As a farmland owner, Chris is a great real-life example of someone who should pursue some tax-savvy charitable giving opportunities.
Specifically, he should give farmland to his favorite causes, and he should give now instead of later for maximum benefit. He should (1) use the federal charitable tax deduction, (2), avoid long-term capital gains taxes, and (3) take advantage of the Endow Iowa Tax Credit. In fact, he should combine all three to achieve tax savings and increase the value of his gifts dramatically..What great role models Chris and his new fiancée (?) could be.
The Bachelor could be The Benefactor
ABC, here’s a new show idea: a guy who deeply cares about his community and state explores tax-savvy opportunities for charitable giving. There would be fewer tears and less kissing, but plenty of thrills and true love. Call me.