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Gifts of Cash
(Gift example*)
For charitable gifts of cash, the IRS allows you to claim up to 50% of your adjusted gross income ("AGI"). However, for charitable gifts of appreciated assets, you may deduct up to only 30% of AGI in any one year. The good news is that with both types of gifts if you cannot use all of the deduction in any one year, then you may carry over any remainder for the next five years. We have illustrated this below.
|
Cash |
Appreciated Assets |
Donor's AGI |
$300,000 |
$300,000 |
Amount of gift |
$200,000 |
$200,000 |
Total charitable deduction |
$200,000 |
$200,000 |
Deductible against % of AGI |
50% |
30% |
Deduction in first year |
$150,000 |
$90,000 |
Net taxable income, first year |
$150,000 |
$210,000 |
Net tax in first year @35% rate |
$52,500 |
$73,500 |
Carryover deduction |
$50,000 |
$110,000 |
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Gift
of:For more information
Email us, complete the personal illustration form, or call us at 1-800-544-4470 so that we can assist you through every step of the process.
