Helpful Deduction Tips for Collectors
Are you a collector? Have you ever wondered if you could donate the items you collect to a charity auction for tax break purposes? If you are considering this scenario, there are some things you should know.
The first thing you need to make sure of is that the charity you are considering is actually a qualified charity. Not all organizations qualify with the IRS for a charitable deduction. Make sure you check the list before you make your donation.
Another important step is to get your collectibles appraised before you make the donation. This can help you get the true value for your donation, which can mean a bigger tax break.
Next, you need to find out if your donation will actually produce any tax benefits for you. Charitable deductions are limited to 30 percent of your AGI, if they are capital gain property and you donate them to a publicly supported charity. On the other hand, if you donate to a private organization, the deduction amount drops to only 20 percent.
Donating collectibles, like artwork for example can be a good way to get a few more deductions and save yourself a little more money on your tax bill. If you have any questions or need more clarification, then you can learn more by clicking here. You can also contact us at 1-877-CPA-2006.
Tax Education Expense
Tax Education Expense Attention engineers!! You may be able to deduct the cost of your tuition spent on your MBA degree. In order to do so, you must connect your MBA degree with a business purpose and it cannot qualify you for a new line of work. The current tax code gives tax breaks to…
Four Types of Income Tax Exclusions
Four Types of Income Tax Exclusions We are all interested in saving taxes. Through effective tax planning, you can preserve more of your wealth (or wealth that passes to your heirs) through eliminating income taxes on the gain. There are four types of income that may be excluded permanently. Income Exclusion #1 – Excluding Gain…
The Research and Development Tax Credit: Claim What You Deserve
The Research and Development Tax Credit: Claim What You Deserve By Shane T. Frank Many manufacturers are not aware that federal and state research and development (R&D) tax credit programs exist that may reward their day-to-day efforts aimed at producing a more efficient product. The Research and Development Tax Credit is a government-sponsored benefit that…
8 Rules of Building Wealth
8 Rules of Building Wealth Forget Performance; look at fees! Remember that it’s not what you make, it’s what you keep. When evaluating an investment evaluate the cost to generate an investment return. If you are using an investment manager compare the performance of the investment net of fees. Be careful when entering into non-tradition…