While you can still claim top-dollar deductions for your charitable donations, the massive new tax law signed last October—the American Jobs Creation Act of 2004—imposed new limits on certain donations. Now that the dust has settled, this much is clear: It's more important than ever to keep proper donation records. If you don't, you could lose all or part of your deductions. Here's the full scoop on how to nail down the top charity deductions:
Stay within the tax-law boundaries
First, let's review the overall limits for charitable deductions by individuals.
If you're especially generous, you can write off charity deductions that total 50 percent of your "contribution base," which is your annual adjusted gross income (AGI) computed without any regard to net operating losses (NOLs). That limit gives you plenty of leeway to write off big-time donations.
For example, if your AGI is $150,000, you can deduct ...(register to read more)