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Ensure Tax Deductions
for Your Gifts |
Gifts to charities are important and fundamental for our society. The
Internal Revenue Code recognizes this and provides tax incentives for
charitable contributions. To take advantage of the available tax
deductions you need to plan your gifts with your tax lawyer.
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Call your tax lawyer before you make any substantial gifts
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Note:
Frequently,
the best gifts for tax purposes are donations of appreciated property.
Donations
of Appreciated Property
One
typical example is a gift of $20,000 of stock to a charity.Presuming
you purchased the shares for $8,000 more than two years ago, There
would be a 15% Federal Capital Gains Tax and State Income Tax. The
$12,000 gain would result in the donor paying pay tax at the 15%
bracket (or $1800 in Federal Tax.) With state income tax, the net gift
would be $18000 to the charity. By donating the
appreciated property, the Charity receives $20,000.
When you
donate to public charities, including schools, hospitals and religious
groups, you can donate cash up to 50% of your Adjusted Gross
Income. Appreciated items have a 30% AGI Cap.
Private
foundations, domestic societies and veteran's organizations have a 30%
cap for cash but only 20% for non appreciated assets.
If you plan on making substantial gift, you should call your tax
lawyer first so you can receive the maximum tax deductions.
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