Year End Reminders of Charitable Tax Considerations
- Gifts of cash are generally deductible in amounts up to 50% of adjusted gross income.
- Gifts of securities and many other assets that have increased in value are deductible up to 30% of the adjusted gross income.
- If the value of securities you would like to give is less than their original cost, it is usually better to sell the securities and give the cash proceeds. You may then be able to claim tax benefits for both the capital loss and the charitable gift, effectively deducting more than the current value of the assets.
- If you own a home or other property you no longer wish to occupy or manage and you would like to make a charitable gift, you may find that a gift of such property can be a very efficient way to meet both goals.
- Contributions that exceed deductible limits for the year of the gift may be carried forward and deducted in up to five future tax years.
- Charitable gifts remain fully deductible for alternative minimum tax purposes.
- Limited tax benefits are available for gifts of jewelry and other personal property.
- There are currently no limits to the amount that can be given to charity free of federal gift and estate tax.
- It can be possible to make gifts that result in increased current income while reducing or eliminating income, gift, and estate taxes.