A 100% Tax Deduction + 2 More Giving Opportunities in 2021

by | Dec 8, 2021 | Insights, Philanthropic Planning

Looking for ways to reduce taxes through strategic giving this year? Here are three opportunities not to miss before the end of 2021.

  • 100% tax deduction. Do you itemize your tax deductions? You can give up to 100% of your adjusted gross income (AGI) for cash contributions made directly to qualifying charitable organizations made before the end of the year. This is usually limited to 60% of AGI. If you have an IRA you don’t plan to spend, this year is a one-time chance to give as much as want to, not subject to usual Qualified Charitable Distribution limits. Contributions made to donor advised funds, private foundations, and charitable remainder trusts do not qualify.
  • Not itemizing? No problem! If you’re like the nearly 9 in 10 taxpayers taking a standard deduction this year, you can deduct cash contributions of up to $600 if married or $300 if single to qualified charities. This deduction is usually limited to those who itemize their deductions.
  • C Corp owners more than double your deduction. C corporations can deduct up to 25% of taxable income for cash contributions to eligible charities this year. The maximum allowable deduction is usually limited to 10% of a corporation’s taxable income.

Want more ideas to save taxes and make a bigger impact on causes you care about? Click here for an archive of our strategic giving articles. Here’s to a generous year end!

Zach Hamilton

Partner, Financial Advisor

About the Author

Zach graduated from Gonzaga University with degrees in Marketing and Finance. While growing up, Zach heard stories from his grandfather about his work as an insurance agent, and other stories from his dad who was an investment manager. They both spoke financial “languages” but had completely different dialects. Recognizing the breadth of the financial vocabulary ultimately led to Zach’s passion for financial planning. He credits his family for this enthusiasm. Zach sees his time with clients as an opportunity to translate all of the different – and often confusing – information they’ve heard and provide clear guidance for each unique situation.

Zach enjoys working with people – his clients – who also appreciate that their financial decisions have an impact not just on themselves, but also on their families, charities and their own life legacy. Many of Zach’s clients have a strong desire to “make a difference”, and they rely on his financial expertise to magnify their philanthropic goals.

The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.

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