Question – Are all Charitable Donations Tax Deductible?
Example – You have made a large number of charitable donations in one year. Sky’s the limit on doing good—and cutting down taxable income, right?
Answer – True or False?
The answer is FALSE.
As far as Congress is concerned, it is possible to be too generous. Generally, your deduction for donations to charity in one year cannot exceed 50% of your adjusted gross income for that year (30% in the case of donations of appreciated assets and contributions to private foundations). But any excess can be carried over for up to five tax years to deliver the tax break you’re due.