Tax Deductions for Charitable Donations
• Donating to qualified charities can reduce your taxable income.
• Itemize deductions to claim donations on your tax return.
• Cash, goods, and even stock donations are eligible.
Non-Cash Contributions
- Donating items like clothing, cars, or stocks is tax-deductible.
- The value of these items can be deducted at fair market value.
- This can be a great way to avoid capital gains tax on appreciated assets.
Donor-Advised Funds (DAFs)
- Set up a donor-advised fund to make large donations over time.
- Get immediate tax deductions while deciding which charities to support later.
IRA Charitable Rollovers
- If you’re 70½ or older, donate up to $100,000 directly from your IRA.
- Avoid paying taxes on required minimum distributions (RMDs).
Charitable giving is a powerful way to support the causes you care about while also providing significant tax benefits. Whether you’re donating cash, non-cash items, or stocks, these contributions can reduce your taxable income. For more strategic options, like setting up a donor-advised fund (DAF), you can receive immediate tax deductions while giving over time. If you have any questions about maximizing your charitable giving or need guidance, Warren Stickney, our experienced financial advisor, is here to help. Contact us today to learn more!