During the holiday season, giving back can be one of the most fulfilling things one can do. On top of the pleasure of seeing your gift make an impact in the community, it may also help lower your taxable income for the year.
To make a deduction, the charity must be considered a qualified organization. Organizations that fit into this criteria are churches, hospitals, universities, veteran organizations, and some nonprofits, among others.
Generally, the deductibility depends on two separate factors: first, the type of organization receiving the gift, and second, the type and value of the asset given. Not every gift to charity must be made in cash; some charities do accept other assets such as vehicles, boats, other hard assets, or real estate.
Regardless of what you're donating, you should always make sure to itemize it to ensure that you are getting the maximum impact on your taxes.
Not every gift to charity is tax motivated; however, it is important to be aware because this can make a potentially make an impact on your taxes for the year in which you donate.
We always suggest to our client’s that they speak with their tax professional about their donations to be sure they are handling the reporting of them the correct way.
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Disclosures:
Rockline Wealth Management (RWM) is a registered investment adviser located in Plainview, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.
Rockline Wealth Management does not offer tax services. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's investment portfolio. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses.
Real-life examples given in this video should not be viewed as guaranteed outcomes when investing. Past performance is not indicative of future results and every individual’s investment circumstances are different. Individuals should consult their financial professional before implementing their investment plan.