Despite what you may think, not all charities are created equal. Some organizations qualify as “50% charities” while others are “30% charities.” Different tax limits based on your adjusted gross income (AGI) may apply.
Strategy: Maximize deductions for your generosity. For instance, you might shift charitable donations from one type of charity to another, especially if you plan on giving large gifts or you expect to have a low AGI this year.
If you’re careful, you can deduct the full amount of your contributions, by staying within the tax law boundaries. Saving grace: Donations you can’t deduct this year are carried over to next year and the following four years if necessary.
Here’s the whole story: Generally, you can deduct cash (or cash-equivalent) donations, assuming you meet strict substantiation requirements. If you donate property instead of cash, the deduction is generally limited to the cost of the property. But you ...(register to read more)