• elitetaxadvisory21

Charitable contributions

It's the most wonderful time of the year. Tis the season for giving. For the 2021 tax year, cash donations upto $300 are deductible for single filers and $600 for married filing jointly filers, when taking Standard deduction. If filing an Itemized return, charitable contributions are deductible 100% of adjusted gross income (AGI). To qualify, the contribution must be: • a cash contribution; • made to a qualifying organization; • made during the calendar year Non-cash donations such as stocks, can be made at the fair market value without realizing the capital gain from the stock, which is essentially advantageous to the tax payer as the gain will not be included as part of income. The charitable contribution must be purely a voluntary donation or gift made without getting, or expecting to get, anything of equal value. Taxpayers must mantain records for donations of $250 or more. A statement describing the amount and type of donation can be obtained from the charitable organization. *Qualified organizations are religious, charitable, non-profit and veterans and alumini associations organizations. Only qualified organizations are eligible to receive tax deductible contributions

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