At a glance
- The publication asked three advisors how they would change high-net-worth clients' year-end giving.
- To offset the 0.5% AGI floor, advisors recommended bunching several years of gifts into a donor-advised fund, donating appreciated securities held more than a year instead of cash, and ordering appraisals for private-company shares.
- A client with $1 million of income would pay a few thousand dollars more in tax, and top-bracket deductions would return 35 cents per dollar instead of 37, the advisors said.
Itemizers will be able to deduct only the portion of charitable gifts above 0.5% of adjusted gross income in 2026, Wealth Solutions Report reported. The publication asked three advisors how they would change high-net-worth clients' year-end giving.
To offset the 0.5% AGI floor, advisors recommended bunching several years of gifts into a donor-advised fund, donating appreciated securities held more than a year instead of cash, and ordering appraisals for private-company shares. One said stock gifts are capped at 30% of AGI and that the capital-gains benefit of giving long-held shares survived the new law.
A client with $1 million of income would pay a few thousand dollars more in tax, and top-bracket deductions would return 35 cents per dollar instead of 37, the advisors said. The charitable goal should come first, with the client's tax and legal professionals settling asset choice and timing. That puts giving inside the year-end tax and investment review, alongside income and realized gains.
Reported by the Tax & estate planning desk from Wealth Solutions Report. Published . Corrections