If you are considering a gift this holiday season, here’s what you need to know about the CARES Act.
- The CARES Act includes an expanded charitable giving incentive that allows taxpayers who take the standard deduction to make up to $300 in charitable cash contributions for single filers ($600 for married couples) to qualified charities like ours (but not to supporting organizations or donor advised funds) this year.
- For those who do itemize their deductions, the law allows for cash contributions to qualified charities such as ours to be deducted up to 100% of your adjusted gross income for the 2021 calendar year.
Additionally, if you are planning to make year-end gifts to your favorite organizations, here are some smart ways to do so:
- When you donate appreciated securities held more than one year, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.
- For donors 70½ and older, qualified charitable distributions allow for gifts from your IRA to be sent directly to a charity like the Los Angeles Master Chorale without having to pay income taxes on the gift.