Charitable Giving Deductions
October 15th, 2007Charitable Giving Deductions
Question: Charitable contributions?
Please explain a few things to me.
In this tax period, I will be earning about $26,500. When I give away items to or through a charitable party, like a church or a thrift store, how much of a resulting deduction can I expect on my taxes? For example, would it behoove me more to sell my laptop for $350 and pay the eBay seller fees, or give it away to a charity at a declared value of $500? It really is worth about $500, though $350 would mean a much quicker sale.
Answer: You aren't likely to have enough to itemize (charity is an itemized deduction item). Even if you were, that $500 declared value would only save you about $75 in taxes, with you in the 15% tax bracket (without going through all of the exact tax calculations).
Selling it is the better way to go in this example.
Senator Thune discusses amendment to protect deduction for charitable giving
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