One of the few highlights for 2020 is that it is a good year to give to the charities you care about, including the Bexley Education Foundation. For the 2020 tax year, you can deduct up to $300 in cash donations without having to itemize. For small nonprofit organizations like BEF, gifts of up to $300 are highly impactful.
The passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020 created the $300 “above the line” deduction for qualified charitable contributions. This deduction is available to all taxpayers who take the standard deduction on their 2020 return.The CARES Act also gives donors who will itemize deductions an option to elect a 100% of Adjusted Gross Income (AGI) deduction limit for cash donations, and deduction amounts above this limit may be carried over for up to five years.
For those who itemize deductions, appreciated stocks held for more than one year, may offer an additional tax benefit in comparison to cash donations. Beyond claiming a deduction for the fair market value of an asset, donors can potentially eliminate the capital gains tax they would incur if they sold the asset and donated the cash proceeds.
Whether itemizing or claiming the standard deduction, individuals age 70½ and older can direct up to $100,000 per year tax-free from their Individual Retirement Accounts (IRAs) as qualified charitable contributions.
Individuals considering any of these charitable year-end giving strategies should consult with their tax and legal advisors before taking action.
To take advantage of this great opportunity and join the list of alumni already supporting the BEF, go online to make your gift today.