1. Benjamin and Betty Beaver 2017
Income: $300,000
Federal Tax Rate 33%
Oregon Tax: $25,000
Property Tax: $7,000
Total Deductions: $32,000
Gift to OSUF: $10,000
Tax Savings: $3,300
“Cost” of OSUF Gift: $6,700

2. Benjamin and Betty Beaver 2018
Income: $300,000
Federal Tax Rate 24%
Oregon Tax: $25,000
Property Tax: $7,000
Total Deductions: $10,000
Standard Deduction: $24,000
Gift to OSUF: $10,000
Tax Savings: $3,300
“Cost” of OSUF Gift: $10,000

3. Will Fewer Itemizers Impact Charitable Giving?
Doubling the standard deduction is estimated to reduce the number of itemizers from 37 million to 16 million, or about 1 in 7 taxpayers (14%).
The 16 million who will continue to itemize historically account for 60% of individual giving. Probably more for High State Income Tax States.
The 21 million who will no longer itemize account for about 18% of individual giving.
Middle-income households claiming the charitable deduction will drop from 17% to 5.5%.

4. Giving Strategies for 2018
Increase charitable gifts or aggregate charitable gifts to itemize deductions to maximize annual deduction.
Stockpile Gifts via Donor Advised Fund (DAF)
Contribute appreciated securities or real property outright or to CRT to increase retirement income.
Make an IRA rollover gift (age 70½+) and save taxes without itemizing deductions.
Leave a bequest by Will or Retirement Plan Designation

5. Benjamin and Betty Beaver’s Bequest
Couple has an estate valued at $15mm
They have included a $1mm bequest to OSUF
The rest is bequeathed to their children
Old Law
The $1mm bequest to OSUF is deductible
Tax savings: $400,000
“Cost of gift: $600,00

6. Benjamin and Betty Beaver’s Bequest
Couple has an estate valued at $15mm
They have included a $1mm bequest to OSUF
The rest is bequeathed to their children
New Law
The $1mm bequest to OSUF is not deductible
Tax savings: $400,000
“Cost” of gift: $600,00
“Cost” of gift: $1mm

7. Benjamin and Betty Beaver’s Bequest
Couple has an estate valued at $15mm
They have included a $1mm bequest to OSUF
The rest is bequeathed to their children
Old law: Children inherit $13mm after-tax
New law: Children inherit $14mm after-tax