Tax associate Brandon Kearns recaps key parts of the charitable giving aspects of last week’s webinar. Please give us a call to learn more or to set up an appointment with a tax team member. We’d be happy to discuss with you in greater depth.
Last week, Blake and Jordan provided our annual year-end planning webinar this week and touched on a number of topics that they believe are important to pay attention to for both individuals and businesses. In this blog post, I will discuss a few of the topics that they emphasized regarding charitable contributions during this webinar.
The first topic of importance that was mentioned was regarding the AGI limitation returning in 2022. As many of us know, charitable giving can be a large part of an individual’s tax strategy. In the past two years, individuals have been able to deduct up to 100% of their AGI as part of the CARES Act. For 2022, the percentage has been reduced to the original amount of 60% of an individual’s AGI. When you review your return this year and wonder why your charitable contributions were limited, this may be the reason.
Additionally, it is important to recognize what may be considered a charitable contribution. Donations through GoFundMe and donations of your time are not allowed to be taken as a charitable contribution on your return. Donations of cash or noncash items such as furniture or clothing must be made to registered charitable organizations in order for the amounts to be included with your return.
Lastly, it is important to consider the avenues of charitable giving that are the most beneficial for you. For a majority of individuals, the best option regarding charitable contributions are those given directly to a charity, but depending on your income level or future plans it may be more beneficial to look into options such as through a Donor-Advised Fund. The world of charitable contributions can be very complicated and it is important to focus on a strategy that is correct for you. If you have any questions about what strategy may be best for you as we reach the end of the year please give us a call and we will be happy to discuss your options.