The Tax Cuts and Jobs Act (TCJA) will generally have minimal impact on charitable giving for higher-income taxpayers. In prior years, charitable contributions were the third-largest itemized deduction, but they may soon take the lead through enhanced planning techniques to maximize their benefit under the new law changes.
Charitable contributions are one of the few deductions enhanced under the TCJA, which increased the AGI limitation on cash contributions from 50% to 60%. The 30% limitation on contributions of appreciated assets still applies.
Charitable contributions are an excellent method to reduce your tax bill in addition to supporting your favorite charities of choice and helping to support your community. There are a couple of small changes to charitable giving rules that might affect you, but if you keep in mind the various rules and limits, charitable giving can continue to play a key role in your tax planning.