As the year is rapidly coming to an end, you may be looking for ways to reduce your tax liability. Have you considered charitable giving? In addition to contributing to a group in need, many taxpayers who itemize deduction may receive a tax deduction.
The following are examples of deductible charitable contributions:
- Cash Contribution to qualified charitable organizations
- Includes contributions made by check, cash or credit card. A contribution charged to your credit card on 12/31/17 is deductible in 2017.
- The deduction will be reduced by any benefit received.
- Contributions of $250 or more require written acknowledgement.
- Volunteer Expenses
- Taxpayers who volunteer for charitable organizations can deduct unreimbursed out of pocket expenses incurred during their volunteer work.
- Contribution of property
- Deductions of more than $5,000 usually require a written appraisal, exceptions apply.
- Contribution of Appreciated Stock
- If you have appreciated stock that you have held for over a year, you might want to consider donating it to a qualified charity. You receive a deduction for the fair market value of the stock as well as the benefit of not paying capital gains tax.
- Membership Dues
- Did you know that a portion of your membership dues paid to qualified charitable organizations may be tax deductible? Examples are memberships to Philadelphia Zoo, Franklin Institute, Longwood Gardens etc.
- Qualified Charitable Distribution
- A taxpayer 70 ½ or older may make a payment directly from their IRA to a qualified charitable organization (limited to $100,000 per taxpayer).
- The IRA distribution would be nontaxable.
- The distribution can be used to satisfy your required minimum distribution.
*Proposed tax legislation may increase the amount of taxpayers claiming the standard deduction in lieu of itemizing deductions. The charitable contribution could be eliminated for those taxpayers. We will keep you informed of any changes to the tax law.
Please contact our office if you have any questions, or would like additional information.
Christine Fisher, CPA
Stephano Slack is committed to giving back to the community. In addition to donations made to various charities selected by firm employees, we also volunteer at community events. In 2017, we were privileged to participate in the Habitat for Humanity Program as well as the Delaware Special Olympics. Follow our twitter feeds for updates as they happen.