This is the eighth in a series of 23 tax tips thatAdvisorOne will publish on each business day in March as part of our Tax Planning Special Report (see ourSpecial Report calendar for a more complete list of topics to be covered and experts who will deliver their insights).
The tax tip today comes from Gavin Morrissey, director of advanced planning at Commonwealth Financial Network, in San Diego, Calif. Morrissey consults on issues involving insurance, tax, executive benefits, business, and estate and charitable planning. He also consults with advisors on concentrated stock and stock option planning and writes a tax planning blog for AdvisorOne (for instance, see his widely read posting on the 'unprecedented' tax planning opportunities in the 2010 tax act).
The Tip: Charitable Tax Deductions on Income Tax, Not Estate Tax
High-net-worth families with charitable intent have used various giving strategies to reduce the size of their estates. In the wake of The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act), charitable giving has become interesting, Morrissey (left) says. Many estates are not big enough to have to use the charitable giving strategy to reduce the estate to the level where there is no estate tax.