“Charity is a write-off, right?”
“I have a bunch of those Goodwill slips; can I use those?”
“Can I write off charitable gifts I make in the name of my company?”
There are a lot of mathematical conditions involved, and in my most humble opinion it got a lot harder for working people with a giving heart in 2018.
I got to thinking about this because I got an email from one of our pet charities thanking us for our monthly recurring gift, and it hit me that it’s time to start gathering up receipts and numbers and all of that good stuff.
We try to set a good example, you see, and get it all that tax stuff knocked out early.
The real truth? We’re in love with that “Thank God that’s done for another year” feeling!
Estimated Tax season, and its final deadline, ended yesterday.
For us, other than getting 1099’s and W2’s done we’re preparing for a busy tax season.
So, let me get back to charitable contributions, and the potential tax benefit.
My wife and I have a few things we like to give to, and we save every single record.
But guess what? Even with our new home mortgage, it has not affected our federal tax liability a bit.
Because of the standard deduction.
With the elimination of personal exemptions in 2018, and the near-doubling of the household standard deduction we married folk need over $24,800 in itemized deductions before it even makes sense to use them.
So why do we save our charitable records? The State of Colorado.
Our state allows a reduction of state taxable income after just a $500 exemption, without other qualification.
Your state may have something similar.
So, now’s an awesome time of year to check out your state’s particular rule on this if you don’t already know it, and check out all your charity’s online sign-ons for year-end records.
Plus that tithing letter from the church, if you get those.
The United States is far and away the most generous charitable gift country by its private citizens in the world.
If your state allows for it, or of course if your federal itemized deductions are in the ball-park…
Now’s a great time to start gathering all that up!
We hope you all have an abundant and happy second-half of January,
…and that 2021 continues to be a year of progress, love, and business growth for us all!