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.
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In doing this, the donor will be entitled to a charitable contributions deduction that is equal to the lesser of the policy's fair market value or its cost basis.
For instance, a charitable contributions deduction is not allowed for regular tax purposes if a taxpayer has zero AGI because of an NOL deduction.
com[TM] announced a new partnership that will give taxpayers a simple and accurate way to maximize their charitable contributions deduction and reduce their taxes.

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