There’s still time to take advantage of tax benefits and make a gift to NFA in 2021!
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 provides several provisions to help individuals and businesses who give to a charity:
Deduction for individuals who don't itemize; cash donations up to $600 qualify
- Individuals who elect to take the standard deduction can claim up to $300 for a single filer or $600 for married individuals filing joint returns ($300/each)
100% limit on eligible cash contributions made by itemizers in 2021
- Subject to certain limits, individuals who itemize may generally claim a deduction for charitable contributions made to qualifying charitable organizations. The law now permits electing individuals to apply an increased limit ("Increased Individual Limit"), up to 100% of their AGI, for qualified contributions made during calendar-year 2021. Qualified contributions are contributions made in cash to qualifying charitable organizations.
Corporate limit increased to 25% of taxable income
- The law now permits C corporations to apply an increased limit (Increased Corporate Limit) of 25% of taxable income for charitable contributions of cash they make to eligible charities during calendar-year 2021.
*If you are aged 70½ or older and have a regular IRA, consider making a gift from it. You may transfer to one or more charities, cumulatively, up to $100,000 per year.