The recent hike in the Alternative Minimum Tax (AMT) rate has been a cause for concern among high-net-worth individuals looking to make large donations to charity. As the tax rate gets higher, so does the amount of money that these high-income earners must pay. This additional fee can often mean the difference between making a large charitable donation and not being able to contribute at all.
Senior Portfolio Manager & Senior Wealth Advisor Thane Stenner of Stenner Wealth Partners+ at CG Wealth Management Canada recently discussed this topic with Wealth Professional Canada. He explained that while the uber-wealthy typically maintain an extremely charitable profile, they will now have to account for the tax effects of their larger donations.
This means high-net-worth individuals may need to adjust their financial plans to incorporate the new tax rate. For those who are unaware of how the AMT works, it is an alternative tax system designed to ensure that everyone pays at least some minimum amount of taxes. The recent hike in the AMT rate means individuals who donate large sums of money to charity must expect to pay more than they would have otherwise.
Mr. Stenner further discussed with Wealth Professional Canada how people can still be charitable despite the increase in the AMT rate. He suggested that although the tax implications may be a deterrent, high-income earners should make sure they don’t completely forgo charitable donations. Rather, they should find creative ways to still donate to causes they care about in a financially responsible way.
Fortunately, high-net-worth individuals have ample resources available to help them make informed financial decisions. Wealth Professional Canada provides free resources and news within the financial vertical. In addition, Thane Stenner is cross-border licensed in the USA and Canada through FINRA and IIROC, which gives him a wealth of knowledge when it comes to providing tax advice.
For more news and information about Thane Stenner and his insights on the AMT hike and its implications for charitable giving, please visit https://stennerwealthpartners.com/. If you are looking for information on how you can give back while still accounting for the new AMT rate, consider consulting with an experienced professional like Mr. Stenner.