& jobs act enhanced the deduction for charitable contributions by raising the limit that can be contributed in any one year. the limit is now 60% of adjusted gross income (agi), up from 50%. assume your client still has a charitable deduction limitation due to their agi. the client might lose the charitable deduction because of achieving this limitation. recommend at least two tax planning strategies to avoid losing the deductions. provide support for your response.

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.