charity - Linkenheimer LLP CPAs & Advisors

Charitable Contribution Deduction Limitation Increased

The deduction for an individual’s charitable contribution is limited to prescribed percentages of the taxpayer’s “contribution base.” Under pre-Act law, the applicable percentages were 50%, 30%, or 20%, and depended on the type of organization to which the contribution was made, whether the contribution was made “to” or merely “for the use of” the donee organization, and whether the contribution consisted of capital gain property. The 50% limitation applied to public charities and certain private foundations.

No charitable deduction is allowed for contributions of $250 or more unless the donor substantiates the contribution by a contemporaneous written acknowledgment (CWA) from the donee organization. Under Code Sec. 170(f)(8)(D), IRS is authorized to issue regs that exempt donors from this substantiation requirement if the donee organization files a return that contains the same required information; however, IRS has decided not to issue such donee reporting regs.

New law. For contributions made in tax years beginning after Dec. 31, 2017 and before Jan. 1, 2026, the 50% limitation under Code Sec. 170(b) for cash contributions to public charities and certain private foundations is increased to 60%. (Code Sec. 170(b)(1)(G), as added by Act Sec. 11023) Contributions exceeding the 60% limitation are generally allowed to be carried forward and […]

By Linkenheimer LLP|2020-09-03T20:04:46+00:00January 12th, 2018|charity, Community, contributions, deduction, deductions, New Tax Laws|0 Comments

Tips for Tax Payers Traveling for Charity

During the summer, some taxpayers may travel because of their involvement with a qualified charity. These traveling taxpayers may be able to lower their taxes.

Here are some tax tips for taxpayers to use when deducting charity-related travel expenses:

Qualified Charities. For a taxpayer to deduct costs, they must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified, and do not need to apply to the IRS. A taxpayer should ask the group about its status before they donate. Taxpayers can also use the Select Check tool on IRS.gov to check a group’s status.
Out-of-Pocket Expenses. A taxpayer may be able to deduct some of their costs including travel. These out-of-pocket expenses must be necessary while the taxpayer is away from home. All costs must be:
- Unreimbursed,
- Directly connected with the services,
- Expenses the taxpayer had only because of the services the taxpayer gave, and
- Not personal, living or family expenses.
Genuine and Substantial Duty. The charity work the taxpayer is involved with has to be real and substantial throughout the trip. The taxpayer can’t deduct expenses if they only have nominal duties or do not […]

By Linkenheimer LLP|2020-09-03T20:04:54+00:00July 28th, 2017|charity, deduction, tax|0 Comments

IRS Provides Tips for Year-end Gifts to Charity

The IRS has reminded taxpayers making year-end charitable contributions to keep in mind current tax law requirements. To claim a deduction, donated clothing and household items must be in good or better used condition; monetary donations must be substantiated by a bank record or written statement; donations worth $250 or more must be substantiated by a written acknowledgement that includes, among other things, a description of the items contributed; and special rules apply to donations of cars, boats and airplanes. Furthermore, only donations to eligible organizations are tax-deductible.

By Linkenheimer LLP|2020-09-03T20:05:19+00:00December 1st, 2015|charity|0 Comments

Charitable contributions from IRAs

Eligible taxpayers have until Wednesday, 12/31/14, to make Qualified Charitable Distributions (QCDs) from their IRAs. QCDs of up to $100,000 per year from IRAs are available to taxpayers who are age 70.5 or older. QCDs are not taxable, and they can be can’t be deducted as a charitable contribution. However, they can be counted as 2014 Required Minimum Distributions (RMDs) if made by the 12/31/14 deadline. Although this break was set to expire on 12/31/13, it was extended through 2014 by the recently enacted TIPA (Tax Increase Prevention Act).

Written by Mike Musson, CPA, Partner

By Linkenheimer LLP|2020-09-03T20:05:36+00:00December 30th, 2014|charity, ira|0 Comments

Linkenheimer teams up with Redwood Gospel Mission to help feed thousands for a Thanksgiving banquet

On Wednesday, November 26th, a team of 11 Linkenheimer staff and family showed up at the Sonoma County Fairgrounds to help serve food to a portion of the county’s almost 4,000 homeless, along with hundreds of working poor and underprivileged families looking for assistance. The free Thanksgiving meal is a tradition that the Redwood Gospel Mission has continued to put on over the years and as families have fallen on hard times, it’s a welcome reprieve to enjoy a free turkey dinner. The plates of food consisted of hot turkey, gravy, stuffing, green beans, rolls, salad and cranberry sauce. And while the plates were always filled to the brim, the staff at the Redwood Gospel Mission made it clear, if people are still hungry, they get to eat as many plates as possible. No one leaves feeling under fed. In addition to the hot food, 600 volunteers handed out grocery bags to almost 1200 people, in addition to the flu shots, medical checks, coats, hair cuts and even massages that were provided. Community and firm culture have always been the pillars of our firm and we were grateful to be able to participate and help out with such an amazing […]

By Linkenheimer LLP|2020-09-03T20:05:41+00:00December 3rd, 2014|charity, Community|0 Comments