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.
 Gift
of:
|
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 |
*This example is based on income tax rates that can change yearly. Contact
our office for a personal illustration based on the latest rates.
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For more information
Email us, complete the personal illustration form, or call us at (800) 797-8022 Ext. 5 so that we can assist you through every step of the process.
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