Congress Did a Good Thing! (We’re as surprised as you are!)

If you still itemize your deductions, you can deduct charitable cash gifts up to 100% of your adjusted gross income (AGI) again this year. On December 27, 2020, when President Trump signed the Consolidated Appropriations Act of 2021, one of the CARES Act provisions that was temporarily extended through the end of 2021, was this rare cash giving incentive.

In a “normal year” you can only deduct cash gifts up to 60% of your AGI. In 2021 you can, of course, simply give just cash up to 100% of your AGI. However, if you typically accomplish your giving with gifts of appreciated assets like stocks or real estate, you can still give up to 30% of your AGI from among such appreciated assets and give the remaining 70% of your AGI in cash.

Remember to always discuss specific giving opportunities and your specific circumstances with your tax or legal advisor. This material is educational in nature and should not be considered legal, tax, or financial advice.