05 December 2005

year-end charitable gift giving

...although widely publicized, the charitable giving provisions of the Katrina Emergency Tax Relief Act bear emphasizing. A contribution of cash to a public charity (not a donor-advised fund, supporting organization or private foundation) made between Aug. 28 and Dec. 31, 2005, will not be subject to the 50% limitation of the taxpayer's adjusted gross income. Such a contribution will also not be subject to the 3% limitation on miscellaneous itemized deductions.

Any such contribution must be of cash only--or checks--and need not be for Katrina relief. In other words, a cash gift (or a check) to your child's school will qualify. Note that charitable gifts made before Aug. 28 come under overall charitable deduction limits.