GIVING for 2020
Here are three things to factor into consideration:
“Above-the-Line” Deduction for Cash Gifts in 2020
The CARES Act enables a taxpayer who takes the standard deduction to still benefit from his or her charitable gifts. A $300 “above-the-line” deduction is now available for gifts of cash by a nonitemizer, but the gift may not be to a donor advised fund or supporting organization.
100% Charitable Deduction Limit
For 2020, the CARES Act increases the deduction limit from 60% to 100% of adjusted gross income (AGI) for gifts of cash to charity (excluding donor advised funds and supporting organizations). The gift may be for any charitable purpose.
Gifts of Long-Term Appreciated Securities
Giving a gift of long-term appreciated securities is often more tax advantageous than giving cash. This is because capital gains taxes can be avoided on gifts of long-term appreciated securities.