If I make a donation to attend a charity event, what amount of the donation is tax deductible?
This is addressing the idea that when a taxpayer makes a donation, they are likely receiving consideration or a benefit in return.
For example, if the taxpayer paid $250 to attend a charity event, then the taxpayer needs to understand what the fair market value of the ticket is worth. The taxpayer can only deduct the excess paid over the fair market value of the ticket. So, if the ticket had a FMV of $100, then the taxpayer would only be able to deduct $150.
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Do I need to get written confirmation from a charity for a donation?
Yes, but only if the donation has a fair market value greater than $250. If the donation is less than $250, then you do not need to obtain a written confirmation/notice from the charity.
Are contributions to a political organization tax deductible?
No, a donation (in any form) that is to a political organization is not tax deductible by the taxpayer. Only donations/contributions to charitable organizations are tax deductible.
How to calculate itemized deduction for a cash contribution?
Assuming the cash contribution is to a qualified charity, the taxpayer can deduct up to 60% of their AGI. For example, if the taxpayer had adjusted gross income of $100,000 and made charitable donations in the form of cash of $70,000 during the year, and then the deduction would be limited to $60,000 ($100,000 x […]