charitable contribution deduction

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Charitable Contribution Deduction

A reduction in one's taxable income as a result of donations to a charity or other non-profit. A charitable contribution deduction reduces the income on which one pays taxes up to 50% of one's adjusted gross income. Donations to most non-profits qualify for the charitable contribution deduction with the notable exception of political organizations such as labor unions or lobbyists.

charitable contribution deduction

An itemized income-tax deduction for donations of assets to Internal Revenue Service-designated organizations. Certain qualifications on this deduction apply, such as a contribution limit of 50% of a taxpayer's adjusted gross income. Of particular interest to investors is the option to donate appreciated property (that is, securities that have increased in value since acquisition) and to deduct the entire market value of the donated assets without being obligated to pay taxes on the capital gains. Donations of appreciated property may subject the taxpayer to the alternative minimum tax.
References in periodicals archive ?
On the grounds that the benefit of a razed building was only incidental relative to the benefit flowing to the public in the form of valuable firefighting training, taxpayers relied on Scharf to employ this strategy to generate charitable contribution deductions.
8 billion in potentially erroneous non-cash charitable contribution deductions in tax year 2010.
Individuals claiming charitable contribution deductions should be mindful of the substantiation requirements of Sec.
Employees receive tax receipts for charitable contribution deductions.
Use sham transactions to claim massive charitable contribution deductions, with little or no money actually going to any legitimate charity;
Excluded distributions cannot be claimed as charitable contribution deductions.
Excess charitable contribution deductions can be carried forward for up to an additional five years.
Everson said that the agency has uncovered "numerous instances" where taxpayers have claimed improper charitable contribution deductions for easement transfers that do not qualify as conservation contributions or have claimed deductions for amounts that far exceed the fair market value of the donated property.
Whether by allowing charitable contribution deductions or aiding in the building of low-income housing, tax law can offer a helpful arm in trying to rebuild the lives of Americans affected by this tragedy.
The brothers claimed charitable contribution deductions in each of the years, and they valued the donation by applying the percentage of the undivided interest donated in each year to the total fair market value of the property in that year.
The home mortgage and charitable contribution deductions have been thorny issues.
These factors should ensure that only qualified charitable contribution deductions will be claimed.