New Deduction Floors for Individual and Corporate Donors
The OBBB introduces deduction floors for both individuals and corporations, a change that may reduce or eliminate the tax benefit of smaller contributions.
For individuals, the law provides for a floor of 0.5% of a taxpayer’s contribution base, which is generally their Adjusted Gross Income (AGI.) The practical effect of this change is that an otherwise deductible charitable contribution must be reduced by 0.5% of an individual’s contribution base for the tax year.
To dig deeper, visit the original article on the Thomson Reuters blog.