Special tax break for major donors to charities--only through December 31."For outright gifts of cash made between August 28, 2005, and December 31,2005, to charities, individuals may take a federal income tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. of up to 100 percent of their adjusted gross income (AGI (Artificial General Intelligence) A machine intelligence that resembles that of a human being. Considered impossible by many, most artificial intelligence (AI) research, projects and products deal with specific applications such as industrial robots, playing chess, ). On January 1, 2006, the deduction limit will revert re·vert v. 1. To return to a former condition, practice, subject, or belief. 2. To undergo genetic reversion. back to 50 percent of AGI." [1] This applies for donations to charities--but not to donor-advised funds or private foundations. [1] Comment Apparently this provision (of the Katrina Emergency Tax Relief Act of 2005) only helps those who can afford to donate more than half of their income to charities (not limited to hurricane relief). It appears to let people with plenty of assets to live on wipe out their income tax entirely for 2005, by giving their whole taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. to the charities of their choice. Check with your accountant for an authoritative opinion. Fundraisers and donors should know about this possibility before it expires on December 31. Spread the word. Reference (1.) Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. , http://post.harvard.edu/pgo/ |
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