easy · Certified Financial Planner Estate Planning
The Havel household wants to minimize their 2026 tax bill. They have a 32,200 standard deduction (MFJ). They intend to give10,000 to charity.
Why might 'bunching' their charitable contributions be a recommended strategy?
- It increases the annual gift tax exclusion to 190,000 for that year.
- It allows them to claim the standard deduction in one year and itemize in the next.
- Charitable gifts are only deductible if they are made in 'bunches' of $50,000 or more.
- It eliminates the 3.8% Net Investment Income Tax on the gifted amount.
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