The One Big Beautiful Bill Act reshapes charitable tax planning for 2026. Itemizers can still deduct gifts to qualified charities, but only the amount that exceeds 0.5% of adjusted gross income. Meanwhile, taxpayers in the top bracket face a reduced tax benefit from itemized deductions, including the charitable deduction. Nonitemizers, however, gain a permanent deduction for cash gifts up to $1,000 for single filers and $2,000 for joint filers. On the downside, property gifts don’t qualify, and donations in excess of those limits can’t be carried forward. Happen to be a C corporation shareholder? Beware of the new donation deduction floor for such entities. Contact us for more info.
