Charitable contributions are one of the biggest tax saving tools available to taxpayers. David Cook, CFP® makes sure you know all the details so that you can not only make a difference in the world but also a difference on your taxes.
“Today we’re going to be discussing charitable contributions and that is one a few things to think about. First, you have got to figure out how much are you going to want to be gifting and is it something that you can actually deduct on your taxes? So first of all, you have to be filing a “Schedule A”, which is Itemized Deductions, in order to actually deduct any charitable contributions on your tax return. Your deadline to make this charitable contribution is December 31st of the year that you’re hoping to get the deduction. Now the IRS does put limits on how much you can deduct. So you have to know what your adjusted gross income (AGI) is likely going to be. The max is right about 50 percent of your adjusted gross income. It could go down to 30 percent or as low as 20 depending on the organization that you’re gifting to. Is it a church? Is it a school? Is it a private foundation? Those are all items that will determine how much you’re able to gift. And is it going to be cash? Or is it going to be highly appreciated assets? Those are also different types of considerations you want to make. Again those are all questions that should be answered but if you need more information go to purefinancial.com”