Attention Givers: There IS good news!! The two-trillion-dollar CARES Act stimulus bill recently passed…and stimulus checks will soon make their way to many American’s bank accounts! This is great financial news for so many in our country, and additionally for those with a heart of generosity.
3 Things Every Generous Giver Should Know from the CARES Act:
- $300 Charitable Giving Deduction:
If you currently take the standard deduction, you will be able to take an additional $300 charitable giving deduction in addition to that. Presently, only those who itemize their income tax deductions are able to use a charitable deduction. For the rest of 2020, an individual will be able to deduct up to $300, irrespective of whether or not they itemize their deductions.
- Up to 100% AGI Deduction:
People who make larger gifts will be able to deduct a much higher amount. Under current law, an individual may deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash. The stimulus package lifts that restriction so that an individual can make a gift only of cash and deduct it up to 100% of their AGI for the year 2020. This is an election, so the donor who wants to use this provision must tell the IRS.
Corporations have much greater incentives to make charitable gifts. There’s also a substantial benefit for corporate charitable gifts. Usually, this is limited to 10% of taxable income for the corporation. That limit has been increased to 25% of the taxable income, making charitable gifts much more attractive to many companies.
- Tax Day Move and Other Niceties:
There are some other benefits for individuals and businesses in this legislation, such as the delay of the 2019 tax filing deadline from April 15 to July 15, lifting of certain IRA early withdrawal penalties for those affected with COVID-19, and other individual and business benefits, which are meant to address the hardships imposed by the COVID-19 pandemic.
As always, for any charitable gift that may impact your tax filing, we encourage you to speak with your tax professional.
Additionally, for any questions Builders International can assist you with, please call our CFO/Director of Development, Larry Russell at 417-582-0003, or via email at email@example.com.