§ 4.1 INTRODUCTION
p. 294. Insert the following at the end of this section:
The use of joint ventures by charities are becoming critical in view of the recent tax legislation:
- Reduction in tax rates, especially C corp rates to 21 percent (permanent). C corps have been the largest investor in low-income housing tax credits and new market tax credits.
- Increase in standard deduction and reduction in individual rates.
- Significant estate tax relief through doubling of exemption.
- Estimated $1.45 trillion cost for 10-year period of tax reform.
- Limit on or elimination of certain itemized deductions.
- All of which will affect charitable giving and therefore make joint ventures even more attractive as a fundraising device.
However, the 2017 Tax Act (Pub. L. No. 115-97) has retained the low-income housing tax credit, and the new market tax credit was not repealed.