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  • Writer's pictureBrian R. Schobel, CPA

Strategic Charitable Giving and Tax Benefits

Incorporating charitable giving into your tax strategy not only supports causes you care about but can also provide significant tax benefits. Understanding how to leverage charitable contributions can optimize your financial planning. Let’s explore the benefits of donating appreciated assets and the specifics of the charitable contribution deduction.

Donating Appreciated Assets:

  • Why? You avoid capital gains tax and can deduct the market value.

  • How? Directly donate stocks or real estate held over a year to a charity.

Charitable Deductions:

  • Itemize to Deduct: Deductions make sense if they exceed the standard deduction.

  • Limits: Up to 60% of your AGI for cash; 30% for assets.

  • Keep Records: Essential for donations over $250.

Smart Giving Strategies:

  • Bunching: Combine several years of donations into one to surpass deduction limits.

  • Donor-Advised Funds (DAFs): Contribute now, decide on the charity later, and get immediate tax deductions.

Strategic charitable giving can be a win-win, offering meaningful support to your favorite causes while optimizing your tax situation. As tax laws and personal circumstances vary, consider consulting with a tax professional like BRS CPA to tailor a charitable giving strategy that aligns with your financial goals.

Give wisely, save smartly,

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