Understanding Income Tax Limits on Charitable Deductions
Income Tax Limits Table
| Recipient Organization | Type of Gift | Deduction Limit | Valuation |
| Public Charities, Donor-Advised Funds, Private Operating Foundations (50% Orgs) | Cash | 60% of AG (scheduled to sunset to 50% beg. 2026) | Cash Value |
| Long-Term Cap Gain (e.g., stocks, real estate), Choice of: | 30% of AGI | Fair Market Value | |
| 50% of AGI | Basis | ||
| Non-Cash (e.g., short-term appreciated assets) | 50% of AGI | Basis | |
| Private Foundations (Non-Operating) | Cash | 30% of AGI | Cash Value |
| Long-Term Cap Gain (e.g., stock, real estate) | 20% of AGI | Basis FMV for marketable securities only | |
| Other 30% Organizations (e.g., fraternal societies) | Any | 30% of AGI | Basis |
Takeaways
Charitable deductions offer substantial tax benefits but come with complex limits. Proper planning is essential to maximize these benefits while avoiding wasted deductions due to carryover rules. At Bridge Law, LLP, we can help you navigate these rules to make the most of your charitable contributions and ensure your giving strategy aligns with your financial goals. Contact us today to learn more.
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