Charitable deductions
Christmas is a time for giving. Charitable contributions are also tax deductible. If
you are in the practice of giving back, you should note the following,
as it has favorable tax implications.
The IRS allows you to take a the following percentages of your Adjusted Gross Income (AGI)
each year.
- Cash – up to 50% of your AGI
- Used Property – up to 30% of
your AGI
- Capital Gains – up to 20% of
your AGI
It is important that your donations are well documented. Where you donate is also as
important. The charity must be a valid 501 (3)(c) operation such as the
United Way or Red Cross. If your total donated property exceeds $500,
you will need to complete Form 8283.
If your donations exceed the percentages above, the IRS allows you to carry over
for up to 5 years. Since December is upon us, the time to take action is
now. Contributing to those in need is rewarding for many reasons – if
for no other reason than it will make you feel good.
For more information, please visit:
Tax Deduction for Charity Donations
http://taxes.about.com/od/deductionscredits/a/CharityDonation.htm or
IRS – Charitable Deductions
http://www.irs.gov/taxtopics/tc506.html
Happy Giving,
Mark Schuster, Partner
November 29, 2013
BACK
|