2021 Charitable Gifts
Why you should act now
Are you planning to make substantial charitable donations before the end of the year? It could be a helpful tax move. One of 2020’s CARES Act provisions temporarily suspended limits on tax deductions for certain charitable gifts. And the Consolidated Appropriations Act (CAA) extended this relief to charitable gifts made in 2021.
Unlimited charitable deductions could enable you to reduce your 2021 tax bill to zero. However, a more measured approach might ultimately lead to more favorable tax results. It’s time to make a few decisions.
Ordinarily, if you itemize, you’re permitted to deduct charitable gifts up to a specified percentage of your adjusted gross income (AGI). Excess gifts may be carried forward and deducted — subject to applicable limits — for up to five years.
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