Charitable deductions

Grants from donor-advised funds to charities grew 19.9 percent last year, thanks to the new tax law.

The move will permit a workaround for businesses to the $10,000 limit on state and local tax deductions in the Tax Cuts and Jobs Act.

The Internal Revenue Service and the Treasury Department are following up on their threat to forestall attempts by states to get around the $10,000 limit in the Tax Cuts and Jobs Act on deductions of state and local taxes by setting up state-run charitable contribution funds.

The IRS is blocking the charitable workarounds high-tax states like New York approved in response to the tax law’s $10,000 limit.