Part 3

Charitable Deductions

A couple of things to keep in mind as we have been talking about, with the new increased standard deduction, saving your donating or bunching them together in one year and skipping the next year may allow you to get a better return.

When considering the amount of your charitable donation, remember that if you receive any benefit from making the donation, you must reduce the amount of your deduction by the fair market value of goods and services received.

For the 2019 tax year, gifts or donations of cash to a public charity are deductible up to 60% of your adjusted gross income. You can also donate property to charitable organizations. When donating property, you can deduct the fair market value of the property or the cost basis.

When using the fair market value of the property, the maximum amount of the deduction is 30% of your Adjusted Gross Income. If you choose to utilize the cost of the donated property, the maximum deduction is 50% of your AGI. This is true for donations of appreciated property to private operating foundations as well (donations to non-operating foundations are limited to 30% when using basis and 20% when using fair market value). 

Remember, certain automobile and travel expenses and other non-reimbursed expenses on behalf of certain charities may also be deductible.