As we enter the holiday season, please be reminded that cash and in-kind donations are deductible with specific rules up to 60% of a taxpayers AGI (up from 50%). To claim a deduction for a cash, check or other monetary gift you must have a written confirmation from the charity. This typically would include name of organization, date and amount of the gift. Charities are required to provide written acknowledgement for donations over $250. (Contributions under this amount can rely on a bank record or canceled check) Please note any good or services received with any donation must be stated on the receipt.
Things to Consider
- Gift fund contributions must be established and funded in 2018 to qualify as a gift. (payments to charity can be made anytime)
- The large increase in standard deductions for 2018 may cause your charitable giving to be not deductible. Consider bunching these in 2018 or 2019 to maximize your tax benefit
- Evaluate the tax impact of gifting long-term appreciated stock vs cash
- If you are over 70 1/2 consider a qualified charitable distribution (QCD) from your IRA up to $100,000
- Charitable Gifts charged on your credit cards but not paid until 2019 are fully deductible
- Make gifts to individuals this holiday season. Each taxpayer can gift $15,000 this year ($30,000 if married) to any individual with no paperwork required