Hurry up and wait – that's what some
financial advisers are telling their clients as an uncertain tax environment
makes it tough to plan charitable giving in 2012.
With 2013 almost upon us and
only two short months of 2012 to go, now is the time to act. For some matters,
like planning for your estate and gifts to loved ones, that means acting with
immediacy. But then again it might still mean to just hurry up and wait!
Depending upon your goals and
hopes for the coming year, it might still be time to wait when it comes to
charitable gift planning.
The rallying cry of “hurry up
and wait” regarding charitable giving was sounded by Reuters in a recent article titled “Charitable
giving in unclear tax times.” One
reason for playing “wait and see” is that we are still in the dark when it
comes to the tax implications 2013 will bring. In fact, that darkness may not
lift until long after the election, especially with retroactive tax policies a
possibility.
Nevertheless, giving is easy, as
far as major financial moves go. So you can wait and see if some definitive
answer pops up before year’s end. If 2013 will be a bad year tax-wise, and the
gift can wait until 12:01 a.m. on New Year’s Day, then the deduction can do the
most good to offset new taxation. But, on the other hand; you might not want to
waste the giving opportunity this year, and a deduction for 2012, by that
minute.
In the end, you might end up
going with your gut instinct on this one either way. Unfortunately, your legal,
financial and tax advisors likely do not have a crystal ball to help you make
the call.
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Reference: Reuters (October
18, 2012) “Charitable
giving in unclear tax times”