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Gifts of Cash
(Gift example*)
For charitable gifts of cash, the IRS allows you to claim
up to 50% of your adjusted gross income ("AGI"). However, for
charitable gifts of appreciated assets, you may deduct up to only 30% of AGI in any one year. The good news is that with both types
of gifts if you cannot use all of the deduction in any one year, then you may
carry over any remainder for the next five years. We have illustrated this
below.
 Gift
of:
|
Cash |
Appreciated
Assets |
Donor's AGI |
$300,000 |
$300,000 |
Amount of gift |
$200,000 |
$200,000 |
Total charitable deduction |
$200,000 |
$200,000 |
Deductible against % of
AGI |
50% |
30% |
Deduction in first year |
$150,000 |
$90,000 |
Net taxable income, first
year |
$150,000 |
$210,000 |
Net tax in first year @35% rate |
$52,500 |
$73,500 |
Carryover deduction |
$50,000 |
$110,000 |
*This example is based on income tax rates that can change yearly. Contact
our office for a personal illustration based on the latest rates.
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For more information
Email us, complete the personal illustration form, or call us at (619) 237-1964 so that we can assist you through every step of the process.
San Diego Symphony Foundation
1245 Seventh Ave
San Diego, CA 92101
(619) 237-1964
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