47

I’m in the same boat as you. Charitable contributions make up the majority of my itemized deductions, and I probably won’t be itemizing next year. Here is how I look at it: If I end up taking the standard deduction, instead of deducting my charitable contributions, I get to deduct more than my charitable contributions. That’s a better deal for me than if ...


27

No. You should only donate appreciated stock. If you own a stock at a loss, you can only deduct the FMV (fair market value) when you donate. Instead, you should sell it, take the loss on your taxes, and donate the cash.


23

Probably the best approach which can work very well depending on your cashflow and the giving in question (whether it's time sensitive or not): 2018: save all $20k in the bank January 1, 2019: give all $20k to charity (from 2018) 2019: give another $20k Dec31, 2019: (optional) give another 20k 2020: give none This means you will take the standard deduction ...


20

I'm being taxed at a 40% rate, then I can give $500,000 to charity, write it off, and save $200,000 on my taxes. That's a net loss of $300,000. I may have paid less taxes, but it cost me 300 grand. Your logic is correct. However, here's another way to think about it. Suppose you are being taxed at a 40% rate. You wish to purchase $500,000 worth of diamonds. ...


18

No, you may not deduct the charitable contributions of your children. The Nest covers this in detail: The IRS only allows you to deduct charitable contributions that you personally funded, whether the contribution was made in your name or in someone else's. If your child or dependent makes a donation to a charity, you are not allowed to claim it as a tax ...


18

Yes, you can deduct that as a charitable contribution on your Schedule A if you are itemizing deductions. The car was a gift from your parents. When you donated the car, you owned it. It doesn’t matter how you obtained it or who originally paid for it. The car was determined to be worth $575 when you donated it (based on the sale), so that is what you can ...


15

"has very little idea about how much we earn and how high up we are in terms of income percentile." The first part of this sentence is tough to understand. My daughter was 12 when she told us what she estimated our income to be. She looked up the price of our home, worked backwards using conservative numbers, and was pretty close. Here you are saying your ...


15

A donor advised charity fund can allow you to set aside several years worth of charity and then give donations whenever you wish. For example you can put 40-60k in the fund during a single tax year and write it off then. As the next few years progress, you can donate the money whenever you wish.


14

The simplest way to handle this would be to buy money orders, make them out to the charities, and leave your name off them. Money orders don't require you to put your name on them, just the name of whoever they're being paid to. You can mail them with no return address as well if you're sure you have the charity's proper mailing address. This way you can ...


12

Agreed. One of the comments for this question Good books for learning about tax strategy/planning uses the phrase: "Don't let the tax tail wag the investing dog." It applies to charitable donations. Donate because it is expected by your church; donate because it makes you feel good; but don't donate just to save money on your taxes. Once you have ...


12

SO has observed a lot of irresponsible spending from a parent, which has scarred SO for life OK, so we've got fear... SO is not very financially savvy and has very little idea about how much we earn ...and ignorance. You are entirely correct to worry about the conversation. Fear plus ignorance equals disastrous conversations. I manage our ...


11

I think the best way to handle her fears is to explain the income and expenses of the household overall, then explain the savings and investment strategies, retirement projections, and then finally explain a concrete number for allowable monthly or annual discretionary expenses (including charity, entertainment, vacations, etc.). You may have delicate ...


11

What is the fair market value of a blood donation? Hospitals pay $130-150 for a pint of blood. They charge their customers more, perhaps, but it's only worth $150 to the Red Cross. Should I be able to write that value off on my taxes if I am giving it to a 501(c)(3) like the Red Cross? According to the IRS, no, blood donations are considered part of the ...


10

That plan wouldn't save you any money because tax brackets don't work that way. All of your earnings up to each level are taxed at that rate. You aren't taxed at the highest rate on all of the money. In your example you pay... 15% on all of your earnings up to 37,450 = $5,617.50 25% on all earnings above 37450 = $12.50 total of $5,630 If you reduce your ...


9

You don't consider a situation where people give to "charity" that they're heading themselves. But generally speaking you're correct, the idea is that charity is tax deductible, and people prefer to give their money to their local church where they get the direct benefit of it, rather than to Uncle Sam.


9

No, it doesn't work like this. Your charitable contribution is limited to the FMV. In your scenario your charitable contribution is limited by the FMV, i.e.: you can only deduct the worth of the stocks. It would be to your advantage to sell the stocks and donate cash. Had your stock appreciated, you may be required to either deduct the appreciation amount ...


9

The IRS rules for the charitable contribution deduction are in IRS Publication 526. Pub 526 has a section called "When To Deduct" that explains the details of placing your donation in a specific tax year. First, the general guideline: Time of making contribution. Usually, you make a contribution at the time of its unconditional delivery. After this ...


8

In addition to tax-related benefits, one answer may be that it helps them avoid being inundated with requests to support other foundations. Most charities have access to public records that indicate potential donors based on income and demographic. They can use that info to solicit for donations. "Hey NFL Player, you have lots of money, and we have cute ...


8

To try and answer all of your questions, Can I enter this amount in Tax Returns? Yes, but at the end you have to choose between the total of your itemized deductions (charitable contribution plus others such as mortgage interest and state taxes) and the standard deduction, you cannot add charitable contributions on top of the standard deduction. How ...


7

A budget that you both agree on is a great goal. X% to charity, y% to savings, $z a month to a reserve for house repairs, and so on. Your SO is likely to agree with this, especially if you say it like this: I know you're concerned that I might want to give too much to charity. Why don't we go through the numbers and work out a cap on what I can give away ...


7

Basically to know if a charity is tax deductible in Australia you should do a search on 'ABN Lookup'. In 'ABN Lookup' if you type "Save the children" in the search box it will come up with a few different ABNs. The head office for Save The Children Australia is in Victoria, so you could select the ABN that corresponds to Save the Children Australia located ...


6

You could always put cash in an envelope and mail it, with no return address on the envelope. Any form of anonymous donation that I can think of has the risk that if the money is intercepted and stolen, you'll never know. Also, you won't get a receipt that you can use for tax purposes. You could try sending this organization a note saying, "I think you're ...


6

I asked a related question last year about which tax year to report income in. The answer to that question hinges on the concept of "constructive receipt" which means you cannot "choose" which year you prefer; you must include income in the year in which you reasonably could have received it. Along similar lines you shouldn't be able to "choose" which year ...


6

This page on the IRS web site states that contributions to any organization on the searchable Exempt Organizations list is eligible to some level of deductions. Note that, apart from the usual IRS deduction limits, A deduction for a contribution to a Canadian organization is not allowed if the contributor reports no taxable income from Canadian sources ...


5

No, you cannot drag the deduction out over more years than you could have based on your limits. The only way your current year deduction can be deducted in the next year is only if you are not allowed to deduct (because of the 50% limit). If you deduct less than you were allowed to deduct, you cannot take the remainder to the next year.


5

I know your pain oh, so much. I literally have a 14 gallon rubbermaid container FULL of solicitations I have received. Even worse, for-profit fundraising companies send most of those mailings! They take the money, and deduct their "expenses", rigged to consume almosts all your gift. Some companies have been caught passing as little as 9% to the charity. ...


5

A rather good IRS paper on the topic states that a donation of a business' in-kind inventory would be Under IRC 170(e)(1), however, the fair market value must be reduced by the amount of gain that would not be long-term capital gain if the property had been sold by the donor at the property's fair market value (determined at the time of the ...


5

In Publication 1828 (excerpt below) the IRS outlines automatic exemption for churches that meet 501(c)(3) requirements regardless of whether they apply for tax-exempt status. Automatic Exemption for Churches Churches that meet the requirements of IRC Section 501(c)(3) are automatically considered tax exempt and are not required to apply for and obtain ...


5

Yes, the portion donated to the qualifying charity is tax deductible. As you note it's how much goes to the charity and not how much extra you pay, because in some cases part of the extra fee covers manufacturing cost of the plate for the first year. This is in line with other charitable giving situations in which you receive something of value (like a ...


4

The good news is that your parent organization is tax exempt and your local organization might be. The national organization even has guidelines and even more details. Regarding donations they have this to say: Please note: The law requires charities to furnish disclosure statements to donors for such quid pro quo donations in excess of $75.00. ...


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