November 2026 Client Profile

Marcus owns a mid-size HVAC installation company that had a strong 2026, generating $850,000 in adjusted gross income (AGI). As the year winds down, his advisor helps him plan a $40,000 charitable gift to a local trade-school scholarship fund.

Because 2026 introduces a new rule under the One Big Beautiful Bill Act, itemized charitable deductions only count above 0.5% of AGI. With Marcus's AGI near $850,000, the first $4,250 of his giving produces no deduction, leaving $35,750 deductible. Rather than writing a check, his advisor suggests donating appreciated stock from his brokerage account instead. By gifting shares he's held for years, he avoids capital gains tax on the appreciation while still deducting the full fair market value above the floor. Because Marcus is in the top tax bracket, OBBBA also caps his itemized deductions at 35%, slightly below his 37% marginal rate. Even so, pairing the gift with appreciated stock meaningfully reduces his 2026 tax bill and supports a cause he cares about — proof that timing and asset choice both matter.

Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.