Strategy at work
Strategy at work Using a qualified charitable distribution may significantly increase clients’ tax savings under the new higher…
Strategy at work
Using a qualified charitable distribution may significantly increase clients’ tax savings under the new higher standard deduction
| Not using a QCD | Using a QCD | |
|---|---|---|
| Income before IRA | $200,000 | $200,000 |
| IRA RMD | $10,000 | $0 |
| AGI | $210,000 | $200,000 |
| State & property taxes | $10,000 | $10,000 |
| Interest paid -none | – | – |
| Charity | $10,000 | $0 |
| Total deductions | $20,000 | $10,000 |
| Standard deduction | $24,000 | $24,000 |
| Taxable income | $186,000 | $176,000 |
| Taxable Income Difference | $10,000 | |
| Tax rate | 24% | |
| Tax Savings | $2,400 |
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