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Charitable Contributions: Tax Tip

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May 15, 2014

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Doing good can also be good for your bottom line. If you itemize deductions, you can write off your charitable contributions, whether you give money to a church, stocks to your alma mater, or clothing to overseas relief efforts. But as is usually the case, the IRS has plenty of rules that can trip you up if you’re not careful. As with all itemized deductions, timing is everything. You can take the deduction for your contribution in the year that you make it. There’s also a limit on how much you can deduct. The basic rule is that your contributions to public charities, colleges and religious groups can’t exceed 50 percent of your Adjusted Gross Income. The caps are a bit lower for gifts to other types of nonprofits. Also, keep in mind that you can’t write off a contribution to the extent that you get something in return.

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For more information on small business taxes, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.

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