EXPANDED TAX BENEFITS HELP INDIVIDUALS AND BUSINESSES GIVE TO CHARITY DURING 2021

Here is a summary of soon-to-expire changes in the tax code that may be of interest to you!

CARES Act Special Charitable Contribution Rule

·         When? Option Expires December 31, 2021

·         Who? Any individual who itemizes deductions

·         What? Can elect 100 percent of your adjusted gross income (AGI) for cash charitable contributions to a public charity such as Sheffield Place.

CARES Act Special Charitable Contribution Rule

·         When? Option Expires December 31, 2021

·         Who? Any individual over 59 ½ years old with an IRA

·         What? Direct your IRA to send a cash distribution to a public charity, ensuring no taxable income from the IRA this year. IRA funds are considered taxable income.

CARES Act Expanded Special Charitable Contributions:

·         When? Option Expires December 31, 2021

·         Who? Any individual who takes the standard deduction

·         What? Typically, those who elect standard deductions are not allowed to claim additional cash charitable deductions. CARES Act expansion allows you to take both the standard deduction AND an additional full deduction for a cash gift to public charity up to $300.00 (or $600.00 for married filing joint returns).

For more information, please read this information from the IRS. This information is  not intended as tax or legal advice.  Please check with your legal, tax or financial advisor to ensure you are selecting the best option for your situation.