Gifting Options Under COVID 528
Did you know?
Congress passed some new Charitable Giving Provisions in the March Cares Act to make charitable giving more attractive
If you itemize on your tax return:
You can donate cash up to 100% (usually only up to 60%) of your 2020 Adjusted Gross Income and totally eliminate tax on your income for this year.
This might be an option if you:
Have a large capital gain from the sale of a capital asset
Will have a huge infusion of income this year such as the sale of a business or a bonus
Want to accelerate future donations into this year to take advantage of this tax opportunity
Whether you itemize or not:
Make a withdrawal from your IRA (for those over age 72) and have it sent directly to the charity of your choice. This can be done whether you opt for your distribution this year or not and the withdrawal becomes non-taxable whether you itemize or not. (Required Minimum Distributions are not required for this year (2020) only).
If you do not itemize:
You can donate up to $300 cash to any charity and deduct it on your 2020 tax return using the new universal deduction