Plan Ahead for 2026 Charitable Giving Rules

Wealth preservation strategies often involve philanthropy. However, starting in 2026, the Omnibus Budget Reconciliation Act of 2021 (OBBBA) introduces shifts in how these gifts are treated. For high-net-worth individuals who itemize, a new contribution floor of 0.5% of your Adjusted Gross Income (AGI) will apply. This means only charitable deductions exceeding that 0.5% threshold will yield tax benefits.

Conversely, taxpayers claiming the standard deduction will gain a specific carve-out for cash contributions, allowing up to $1,000 for single filers and $2,000 for joint returns. Navigating these transitions requires proactive estate and gift tax alignment. Reach out to Sullivan & Company CPA Inc. in Burlingame, CA, to refine your philanthropic legacy.