Are you a giver? Do you make charitable contributions? Attend fundraisers? Donate old equipment? If so, then there are a lot of tax advantages to your generosity.
Here’s a story…
One of my clients thought he owed more than $50,000 to the IRS this year. However, when I asked him if he ever made charitable contributions, I hit the jackpot… Turns out, the man is a serial giver!
He gives to his church, he donates to his father’s veteran organization, he and his wife attended dozens of galas each year in support of different causes, they even donated (very valuable) artwork to the local museum and 2 carloads of clothes to Goodwill.
When I added up all of that he donated last year, we were able to find more than $25,000 in deductions!
There are a LOT of organizations that are qualified to receive donations, and that YOU are qualified to deduct. Some examples include churches, synagogues, trusts, community chests, medical research, veterans organizations, some fraternal societies, silent auctions, volunteer fire departments, educational foundations, old property donated to charities, and much more.
Now before you get too excited, you need to know that there are lots of intricacies in calculating these deductions and you need to follow the rules – especially the need for meticulous documentation, because (once again!) large charitable deductions are an IRS red flag.
Even so, when you give to a charity, you will gain as well when it comes to your taxes. I like to live by the BNI saying, “Givers Gain”, and believe it or not, so does the IRS!
So happy giving and great success in 2011!
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