Should I DAF or wait for tax bill to lift SALT ?

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Muggle
Posts: 10
Joined: Thu Apr 23, 2020 10:18 am

Should I DAF or wait for tax bill to lift SALT ?

Post by Muggle »

I am thinking of making a big DAF (Donor Advised Fund) contribution before December end to get some tax relief. I plan to use the DAF for grants for the next 10 years or so.
I don't like the .6% annual fee of the Fidelity Givings account but don't see an alternative.
The main driver is the low SALT limit of 10K. But if Congress were to pass a bill lifting it (it seems well on the way) I don't really need to commit to DAF upfront and pay the 0.6% annual fee, right?

Any suggestions, which way I should go?
jarjarM
Posts: 2511
Joined: Mon Jul 16, 2018 1:21 pm

Re: Should I DAF or wait for tax bill to lift SALT ?

Post by jarjarM »

Since SALT change is a pending legislation, we can't talk about it yet. But my vote would be on holding it off to see. There's too many tax variable changes potentially associated with BBB act. Also, in before lock :beer
Makefile
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Joined: Fri Apr 22, 2016 11:03 pm

Re: Should I DAF or wait for tax bill to lift SALT ?

Post by Makefile »

You could probably salvage your question by rephrasing it as whether to use a DAF this year and bunch itemized deductions, if there is an uncertain possibility you might be itemizing anyway in future years.
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LadyGeek
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Re: Should I DAF or wait for tax bill to lift SALT ?

Post by LadyGeek »

Speculation about future legislation is prohibited by forum policy, see: Unacceptable Topics
Politics and Religion

In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptions to this rule are:
  • Common religious expressions such as sending your prayers to an ailing member.
  • Usage of factual and non-derogatory political labels when necessary to the discussion at hand.
  • Discussions about enacted laws or regulations that affect the individual investor. Note that discussions of proposed legislation are prohibited.
  • Proposed regulations that are directly related to investing may be discussed if and when they are published for public comments.
This forum is focused on investing that is directly actionable to personal investors. We don't hold debates on conjecture.

The whole point of the policy is to (1) eliminate contentious disagreements that result from these discussions and (2) keep investors from making bad decisions. Proposed legislation changes many times between the time it's introduced and signed into law.

The best approach is to make your decision about current law. When the law changes, make your decision at that time.

The OP's question is predicated on a change of US law. This thread has run its course and is locked. (The thread can be reoponed if the SALT limits are changed and signed into law.)

This thread is now in the Personal Finance (Not Investing) forum (taxes).
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