- September 17, 2016
- Posted by: Smith & Smith
- Category: Charitable Giving Strategies, Federal Income Tax Preparation, financial projections Arlington Dallas
There are a lot of complex rules to follow when understanding which of your assets have taxes imposed on them by the IRS. If you are a resident of the Dallas Fort Worth area, you can get a CPA in Dallas to advise you on the best course of action. Itemizing your assets, when preparing to pay out your taxes, is the best way to ensure that you get the most out of tax deductions. Charitable donations are another way to make sure that the part of your income that went to charity is exempt from taxation. However, this only works when you pay through the right agencies. You need solid advisory services to help you set up the right channels to make this happen and apply for tax relief.
Charitable donations that qualify for deductions
The IRS allows charitable donations to be exempt from taxes if they are paid via proper authorities. Itemizing your assets will help you understand which of your assets qualify for relief and making your donations accordingly to maximize your savings through tax deductions. The conditions as reserved by the IRS for tax relief can be summarized as follows.
- The community chest, corporation, trust, or foundations that have been organized in the United States can accept donations that will be eligible for tax relief. These entities have to be operated for charitable, religious, educational, scientific or literary purposes, and prevention of cruelty to children and animals.
- Donations to a state, or United States possession, including District of Columbia, which are made for public purposes exclusively, are qualified for deductions.
- Donations to certain volunteer organizations such as a non-profit volunteer fire company are also eligible for relief.
- Non-profit cemetery companies can also accept donations that are qualified for tax relief provided the funds are used in caring for the cemetery, mausoleum, or crypt.
- For charitable donations to war veterans’ organization or its auxiliary, trust, or foundations that have been organized in the United States or its possessions.
- Deductions can also be made on donations to civil defense organizations under state, federal, or local law. It includes unreimbursed expenses of civil defense volunteers that are directly connected to the service.
Maximize your tax savings
The tax deductions on account of charitable donations will only be on up to 50 percent of the whole. You can still avail relief on the entire amount if you have paid the sum via cash or cheque. Understanding the assets that qualify for relief is necessary and you can consult with a CPA advisory to properly understand how much you stand to save on your taxes.