Trump-Republican tax plan, Bad for large families

[yitzf]

won't some banks let you create your own DAF for a reasonable minimum deposit without all those cuts?

Fidelity and Vanguard have them but charge 60bps, and no check writing to meshulachim.

[Mikeoracle]

They are the only ones I found that have the certificate program. I'm looking into the premium account with 3% fee. The way it works is that they charge that fee at the time of redemption and you can decide if you pay the full 3 or split it 1-2 or 2-1 with the charity/meshulach.

[Mikeoracle]

 

Sounds right.
So suppose someone gives 10k, you will save 2500 if you are in the 25% bracket.

How does it work? Lets say you give them 10k. Which charities can you then give the 10k to?
What fee do they charge for you giving them 10k to distribute? (If anything they should pay you, since they can invest your money until you tell them where to send it.)

for the DAF account you let them know where to send funds to any IRS approved charity.
I think the certificate accounts are just another "method of advising" them how to distribute your funds.
Since the original donation is considered irrevocable and you don't really own the funds anymore, it is referred to as "advising".

[Mikeoracle]

There is another great strategy if you want to fund a DAF. You are allowed to donate stocks, and the donation is valued at the current market rate. This actually results in a double benefit because you dont pay any cap gains that you may have had.
For example, say you bought $5k AAPL a year ago and it is now worth $10k, when you fund the DAF with these shares you save on the $5k cap gains, on top of the $10k charity deduction you are getting. A variation of this strategy would be, even if you wanted to retain your AAPL position, you can essentially donate the shares, purchase new shares at the same time to replace them and now your position has a new higher cost basis, for your eventual sale thereby saving you on future cap gains.
I am thinking of doing this with any stock position that I currently have high percentage gains, in order to reset the cost basis and maximize the charity deduction at the same time.
I contacted The Donors Fund and they confirmed they can accept stocks as long as they arent penny stocks or unlisted stocks, but prefer it to be valued at least $10k but may be negotiable.

[Mikeoracle]

Sorry I forgot to point out one important point, the below would only work with long term cap gains and not for short term cap gains (stocks must have been purchased prior to 2017).

[yitzf]

Sorry I forgot to point out one important point, the below would only work with long term cap gains and not for short term cap gains (stocks must have been purchased prior to 2017).

More specifically held for 366 days or more, so if they were purchased at the end of December 2016 you still might have to wait.

[CPA]

You can donate appreciated stock directly to a charitable organization  - you don't need a DAF for that.

It looks like QTR will NOT be repealed.

[Mikeoracle]

You can donate appreciated stock directly to a charitable organization  - you don't need a DAF for that.

true but that's only if you want to make a donation that big to one charity now.
The idea is that this would give flexibility for any size donations and pre load for next year now to capture the charity deduction benefit this year for those that will lose it in the coming years

[Deal Guy]

It looks like QTR will NOT be repealed.

And I guess if agudah would've been proactive with the tuition/charity and had hundreds calling for the past few weeks, we possibly could've gotten it into the bill as well.

But a guess its time for me to stop crying about lost causes

[skyguy918]

And I guess if agudah would've been proactive with the tuition/charity and had hundreds calling for the past few weeks, we possibly could've gotten it into the bill as well.

But a guess its time for me to stop crying about lost causes

They're not comparable - period.

[Deal Guy]

I know.....

Once this tax bill passes, can Congress decide to pass a bill next year or the year after to allow tuition to count as charity? Or, in order for that to ever pass, it would've needed to have been passed with this tax bill?

[Deal Guy]

Technically my question applies to anything. Can Congress decide to pass any tax law next year after this overhall?

If yes, then why was this pressure to fit it into 1.5 billion? They could've just left some good parts out, and then passed it next year as separate legislation. No?

[yitzf]

Technically my question applies to anything. Can Congress decide to pass any tax law next year after this overhall?

If yes, then why was this pressure to fit it into 1.5 billion? They could've just left some good parts out, and then passed it next year as separate legislation. No?

They would need 60 votes in the senate

[skyguy918]

Seems like they changed the shared position of the house and senate bills on SALT. It's now all deductible, but only to a max of 10k for state, local and property combined.

[skyguy918]

They would need 60 votes in the senate

Why? It would work with any budget reconciliation, same as this year.

[yitzf]

Why? It would work with any budget reconciliation, same as this year.

Technically my question applies to anything. Can Congress decide to pass any tax law next year after this overhall?

If yes, then why was this pressure to fit it into 1.5 billion? They could've just left some good parts out, and then passed it next year as separate legislation. No?

[yitzf]

Seems like they changed the shared position of the house and senate bills on SALT. It's now all deductible, but only to a max of 10k for state, local and property combined.

According to the Wall Street Journal it's still in play and it might be that you can choose one or the other but can't combine both.

[Deal Guy]

Funny.
I didn't mean what you interpreted in red.

[Deal Guy]

Any bill that passes Congress needs 60? Why?

[good sam]

Any bill that passes Congress needs 60? Why?

To overcome a filibuster.