New Tax Rules Are Making This Charitable Giving Strategy Even More Valuable

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors.

They say it's better to give than to receive, and that's especially true when clients use qualified charitable distributions.

Tax law changes made by the One Big Beautiful Bill Act are quietly reshaping charitable giving and income planning strategies for affluent retirees in 2026, particularly their use of qualified charitable distributions. The tax law's new 0.5% adjusted gross income floor and 35% cap on itemized deductions have materially changed the economics of charitable giving, according to TaxStatus CEO Kevin Knull. The changes are making QCDs significantly more valuable because they bypass both limitations entirely by reducing AGI directly. Advisors should make sure they're up to speed on the new changes to help clients avoid unnecessary tax bills.

"QCDs are great because they aren't just a tax deduction," Knull told Advisor Upside. "It's a straight-up deletion."

Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks.

READ ALSO: Clients Have Retirement Savings Plans. Withdrawal Plans? Not So Much and Why the Gen Z Dat

Fuente original: Yahoo Finance (https://finance.yahoo.com/economy/policy/articles/tax-rules-making-charitable-giving-040100096.html)