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Gifts of cash can be deducted
against a larger portion of your taxable income than can
gifts of appreciated assets. Cash is the simplest donation
and provides us immediate benefits.
The IRS allows you to claim
charitable deductions for gifts of cash up to 50 percent of
your adjusted gross income (“AGI” – the figure at the bottom
of the first page of Form 1040. See glossary for full
definition). Alternatively, if you use appreciated property
instead of cash to make your gifts, you can claim deductions
up to only 30 percent of AGI. Although excess deductions
may be claimed over the five years after the gift is made,
if you are looking for substantial immediate tax deductions
you may be better served giving cash instead of property:
For charitable gifts of cash,
the IRS allows you to claim up to 50% of your adjusted gross
income (“AGI”). However, for charitable gifts of
appreciated assets, you may deduct up to 30% of AGI in any
one year. The good news is that with both types of gifts if
you cannot use all of the deduction in any one year, then
you may carry over any remainder for the next five years.
*This example is based on
income tax rates that can change yearly.
WARNING: Consult your legal and
tax advisors before making any material decisions based on
this information.
For more information:
Email
us, complete the
Personal Illustration
Form, or call us at (270) 773-2887 so that we can
assist you.
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Appreciated Securities
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Cash
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Life Insurance
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Real Estate
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Retirement Plan
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