• Up to $300 write-off for individuals taking standard deduction
  • Up to 100% of adjusted gross income (AGI) can be deducted from cash donations
  • Pass-through entities can deduct up 25% off of food donations
  • C corporation contribution cap bumped to 25% of taxable income
  • Enhanced charitable deductions for taxpayers who donate to conservation easements

The CARES Act provides new incentives for both individual and corporate taxpayers to make charitable contributions. The new legislation provides increased deductibles and limited liability for the 2020 tax year.

What does it mean for individual taxpayers?

The 90% of households who claim the standard deduction are eligible for a write-off for donations up to $300. Those who itemize their deductions can now claim charitable contribution deduction for donations to public charities up to 100% of adjusted gross income (this is a change from the previous 60% limit).

What does it mean for corporations?

Corporations also see benefits from CARES new legislation. Corporations see an increase from 10% to 25% of adjusted gross income for qualified gifts. Additionally, pass-through entities can deduct up to 25% (previously 15%) of food inventory and donations.

What does it mean for conservation easements?

Taxpayers who donate property with the intent for it to be used for the public benefit will be able to claim enhanced charitable contributions with significantly fewer restrictions on the usage of the property.

Sincerely,

Anthony Perrone
Financial Services Partner

Contact:
516-541-6549 | Email

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