CARES Act / Tax Benefits
Provision for Charitable Giving: Taxpayers must normally limit their current charitable deduction for cash gifts to no more than 60% of their adjusted gross income. For 2020 only, individuals making cash gifts to a public charity may elect to increase this limit to 100% of their adjusted gross income. This is an opportunity for those planning major cash gifts to eliminate or greatly reduce income taxes in 2020.
Exceptions: Unfortunately, this expanded limitation does not apply to gifts to donor advised funds or supporting organizations. Deductions for gifts of appreciated securities will still be subject to their normal limitation of 30% of adjusted gross income. For 2020 only, the limitation on corporate cash gifts has been increased from 10% to 25% of taxable income.
Please consult your Tax Specialist to see how these provisions apply to you. To review the complete text of the CARES Act, visit: ncfgiving.com/caresact.