Using the trust, she front-loaded years of charitable deductions into one year and itemized that year.
Assuming you're in a 25% bracket - and you itemize - that works out to a tax savings of just over $1,300 per year.
The interest would be taxable income to you but tax deductible to your son, provided he has enough deductions to itemize that mortgage interest.
Assuming you itemize, that payment can be written off as a charitable donation because some of it goes directly to research and the rest pays expenses you incur doing volunteer work, which is always deductible.
The "finance charge", not itemized, using that term.
The payment is an itemized deduction that figures into your taxable income.
In addition, the administration wants to reinstate for high-income folks a separate haircut to itemized deductions that was gradually phased out under the Bush tax cuts.
If they were there would be a tax arbitrage opportunity, since the investment interest expense is an itemized deduction that might have a 35% benefit.
But it seems likely to pass, and very likely to include changes in itemized deductions that will make philanthropy more expensive.
Homeowners could still itemize their mortgage interest payments and charitable donations, but only about 5percentt would have itemized deductions that exceed the value of the $24,000 standard deduction, according to NAR.
Once the work has been accomplished, ask for an itemized invoice that breaks down the work allegations, components, service charge, etc. Be prepared.
