How much can you legally deduct on your taxes for charitable contributions?

October 5th, 2009

While tax laws are pretty complicated, there are still some general limits on charitable tax deductions. These limits only apply if you are donating a significant amount – more than 20% of your adjusted gross income (AGI). If you are not donating more than this amount in a year, then deduct away!

Once you reach the 20% threshold though, you should know the different limits on tax deductions that come into play. You can’t deduct more than 50% of your adjusted gross income (AGI) for cash donations, 30% for property, and 20% for assets. If you go over your limit for one year, you can roll the deductions out overthe next five years – and hopefully you’ll be able to deduct it all.

Tags: , ,

Leave a Comment

All comments are moderated before being displayed.