CINCINNATI CHANGE AID
TAX DEDUCTION FOR AID
A New Tax Law Could Give You Twice the Deduction Until Dec. 31, 2005
A charitable cash gift made to Cincinnati Change this calendar year could be twice as advantageous from a tax perspective than in the past. Through Dec. 31, 2005, donors may deduct qualified cash gifts up to 100 percent of their Adjusted Gross Income (AGI) rather than the usual 50 percent limit.
In addition, cash gifts will not be subject to the 3 percent reduction rule applied to itemized deductions when AGI exceeds $145,950.
This change is a result of the Katrina Emergency Act of 2005 (KETRA) enacted by Congress and the President to encourage contributions to the relief effort and charitable organizations that may have experienced a decline in gifts because of the hurricane devastation.
Another incentive is available to donors with IRAs who are at least 59 1/2 years old. They can withdraw funds, make a contribution to Cincinnati Change or another charitable organization (we will be glad to help you do so) with those funds, and offset nearly all of the income tax liability on the withdrawal.
Cash gifts can also be used to establish Charitable Gift Annuities (CGAs).
Available to those age 60 and older, CGAs provide a steady stream of income at a fixed rate for life. The gift establishing the annuity, $10,000 or more, qualifies for an income tax deduction, and a portion of the annual income is tax-free.For details contact hershel daniels at h.daniels@cincinnatichange.com.
A New Tax Law Could Give You Twice the Deduction Until Dec. 31, 2005
A charitable cash gift made to Cincinnati Change this calendar year could be twice as advantageous from a tax perspective than in the past. Through Dec. 31, 2005, donors may deduct qualified cash gifts up to 100 percent of their Adjusted Gross Income (AGI) rather than the usual 50 percent limit.
In addition, cash gifts will not be subject to the 3 percent reduction rule applied to itemized deductions when AGI exceeds $145,950.
This change is a result of the Katrina Emergency Act of 2005 (KETRA) enacted by Congress and the President to encourage contributions to the relief effort and charitable organizations that may have experienced a decline in gifts because of the hurricane devastation.
Another incentive is available to donors with IRAs who are at least 59 1/2 years old. They can withdraw funds, make a contribution to Cincinnati Change or another charitable organization (we will be glad to help you do so) with those funds, and offset nearly all of the income tax liability on the withdrawal.
Cash gifts can also be used to establish Charitable Gift Annuities (CGAs).
Available to those age 60 and older, CGAs provide a steady stream of income at a fixed rate for life. The gift establishing the annuity, $10,000 or more, qualifies for an income tax deduction, and a portion of the annual income is tax-free.For details contact hershel daniels at h.daniels@cincinnatichange.com.
