Income Tax Charitable Donations
Making tax deductible charitable gifts during life let’s donors see how their generosity benefits Gods Kingdom. The gift can mean an income tax charitable deduction in the year it’s made. Essentially, the government subsidizes and encourages charitable giving by allowing donors to pay fewer taxes.
- Higher income individuals are subject to a phase out of their itemized deductions when the adjusted gross income exceeds certain thresholds.
- When giving a gift of property other than cash, fair market value generally determines the amount of the deduction
- Certain property gifts are deductible only to the extent of the donor’s cash basis, including ordinary income property, appreciated short-term capital gain property and certain types of appreciated long-term capital gain property.
- Generally, contributing property other than cash and publicly traded securities that have a value of greater than $5,000 requires an appraisal.
Types of Donations: