14

Can I now use the gross $200 which I've given them as a potential tax deduction? No, the charitable contribution was the $100 worth of clothes you donated, purchases at these stores aren't tax-deductible. When you get something of value in return for a donation it decreases the amount of your charitable contribution. Another example would be a charitable ...


9

When you donate an item, you can deduct the amount that you could have sold the item for on the open market. For instance if you donate an '83 Chrysler LeBaron, you cannot deduct the $11,800 sticker price, but the $200 "guy on Craigslist will pay that" price. Or arguably, the $900 "State smog buy-back program will pay that" price, but that argument is ...


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 ...


6

First, using Gift Aid never really reduces your taxes: it merely allows the charity to reclaim some of the taxes you have already paid (the amount reclaimed assumes you are a basic-rate tax-payer). If you are actually a higher-rate tax-payer, you can also reclaim the remainder of the taxes you have already paid. Example 1: Normal-rate tax-payer: Consider £...


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

Step Transaction Doctrine. This is why the plan runs afoul of IRS regs. From the linked IRS doc - "Under the step transaction doctrine, "a series of transactions designed and executed as parts of a unitary plan to achieve an intended result ... will be viewed as a whole regardless of whether the effect of so doing is imposition of or relief from ...


3

There is so much in the tax code where timing is important. In many cases, a day makes all the difference when a transaction occurring in one year (Dec 31) vs the next (Jan 1) can have a very different tax implication. I am sorry for your loss. No, the situation is not reversible, as the stock is already sold. It may not be any consolation, but yours is ...


3

Assuming the church is a tax exempt organization, donations are deductible if you itemize your deductions. If you're not getting an annual receipt or don't have records, the deduction might be hard to justify in an audit. The IRS publishes information on how to treat charitable contributions.


3

tl;dr: Your idea is mathematically a good one, but maybe you still shouldn't do it. I believe you're on to something with postponing your charitable donations, but for a different reason than you're thinking. It sounds like the change in the standard deduction from 2017 to 2018 affected your ability to deduct donations (as it did many people), since it ...


3

If your business is not an LLC or a corporation, you cannot take charitable contributions as a business expense. (And as you don't give 1099's to corporations, I'm guessing you're not one.) Pay yourself from the business funds, then use this income to make charitable contributions. You then claim the deduction for charitable contributions normally. Note ...


2

All due respect to @RonJohn, the IRS requires a receipt from a charitable organization when a single donation is more than $250. “As much as you want” fails to take this into account. I know some older people who visit their house of worship 5-7 days a week, so if one wants to push the point, can suggest that $200 * 365 = $73K. But this fails a common sense ...


2

If you haven’t already made the charitable donation, you can still donate appreciated stock (assuming you still have some), and use the proceeds of the sale for some other purpose, such as diversification, for which you would need to sell more stock anyway.


2

To add a bit to what Charles Fox has written: Lend the money to yourself for your retirement. In other words put the money into whatever vehicles you would normally use to save for your own retirement. Keep a note of how much of it you would like to have donated, and when the tax laws change in your favour, simply take money you would otherwise have put in ...


2

Invest in an index fund. Every few years (bunching donation deductability as per TTT's answer), donate the appreciated investments. You will be able to deduct the entire value at time of donation from your taxes. If they haven't appreciated, you can either wait longer for them to appreciate, or sell them, take up to $3000 the loss off your taxes, and donate ...


1

I would recommend reading this article "How to give like a billionaire" it has some interesting suggestions including how to set up a small charitable foundation which allows you to cash out your equity without the associated capital gains. I'd also recommend avoiding attempting to invest in real estate unless your goal is to use this as a charitable ...


1

To follow up on Todd's answer: https://www.nerdwallet.com/blog/taxes/standard-deduction/ In 2018, it's $12,000 for single filers and married filers filing separately, $24,000 for married filers filing jointly and $18,000 for heads of household. To more of your questions: How much minimum and maximum amount I can contribute via cash and ...


1

With the new tax code of 2018 we have For contributions of cash, check or other monetary gift (regardless of amount), you must maintain a record of the contribution: A bank record or a written communication from the qualified organization containing the name of the organization, the amount, and the date of the contribution. i.e. all cash ...


Only top voted, non community-wiki answers of a minimum length are eligible