Ep #133: The Two Provisions That Just Made Your Checkbook Less Efficient

Half a percent. That's the new floor under every itemized charitable deduction this year, and it isn't even the provision on this list that costs you the most.

In this episode, Jared walks through two provisions inside the One Big Beautiful Bill Act that took effect this tax year and quietly changed what it costs a surgeon in the top bracket to give to charity: a new 0.5% of AGI floor on itemized charitable deductions, and a cap on the value of those deductions at 35% instead of the old 37% rate for top-bracket taxpayers. He rebuilds a worked example using this year's actual numbers, a $100,000 gift of appreciated stock to a donor-advised fund that lands at $34,300 in income tax value plus a separate $20,000 in avoided capital gains tax, not the roughly $37,000 figure that's been floating around from before the rules changed.

He also covers why the 60% AGI cap on cash-gift deductibility didn't move (it's now permanent, not a temporary rule due to revert), and why bunching several years of giving into one donor-advised fund contribution clears both new frictions once instead of paying them every single year.

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