PRINCETON generations

Ideas and Strategies from the Office of Gift Planning at Princeton University

Alumni Experts Tackle New Tax Law

McCue '68, Rampell '74, Jordan McCall '78, Fox '75

Howard McCue ’68, Richard Rampell ’74, Jennifer Jordan McCall ’78, and Charles Fox ’75

The recent tax code overhaul will keep accountants and attorneys busy in the coming months, but 1746 Society members got a bird’s eye preview from expert alumni panelists at Reunions.

The society’s annual gathering — moved to Reunions so more members could attend — featured “Taxing Times: What You Need to Know About Tax Reform,” a panel moderated by Richard Rampell ’74, managing principal at MBAF’s Palm Beach office.

Speakers at the breakfast discussion were Charles D. “Skip” Fox ’75, a partner with McGuireWoods LLP and chair of his firm’s tax and employee benefit department; Jennifer Jordan McCall ’78, a partner with Pillsbury Winthrop Shaw Pittman LLP and chair of its estates, trusts, and tax planning section; and Howard M. “Scott” McCue III ’68, retired partner in the international law firm Mayer Brown LLP, where he led its wealth management practice.

Consider This

Here’s a sample from the discussion relating to charitable gifts:

  • Limitations on the deduction for state and local taxes may actually increase the effective rate of state taxation — and thereby make charitable income tax deductions more valuable in some states and localities.
  • Strategize by “bunching” — make several years’ deductible gifts in a single year. Princeton can distribute credit to Annual Giving or Reunion gifts over future years.
  • Consider an IRA charitable rollover if you are 70 ½ or older to satisfy your required minimum distribution and act philanthropically. While this option (whole or in part), won’t give you a federal income tax deduction, this strategy avoids federal income tax (and often state income tax as well) for the amount of the gift.

The Bottom Line:

Run the numbers to learn how your charitable gifts will affect your tax status.

Watch the panel discussion video.

 

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This entry was posted on October 29, 2018 in FALL 2018.

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Photos by Andrea Kane and courtesy of Paul Sittenfeld '69, Ronald So *71, and Robert Johnstone III '56