The Tax Book: Real Answers, Real Fast!       HOME       ORDER       ABOUT US       CONTACT
Results 1 to 7 of 7

Thread: IRS Notice on SALT limitations and "charitable contributions"

Threaded View

  1. #7
    Join Date
    Oct 2015

    Default What about tax deduction instead of credit?

    Intent to Make a Charitable Contribution

    Can we agree that a significant portion of current charitable contributions are in part dependent on the availability of a federal itemized tax deduction? We have already seen reports that charities are working hard to get their donors to work on alternate-year-doubling strategies for continuing to get some kind of tax break, so somebody involved thinks the tax break is an item of value received by their donors in exchange for the donation. And then there is the continuing popularity of the QCD from the IRA for 70 1/2 year olds and up, I think that is most often promoted as a tax break.

    For making a donation to a state or locality for the general good (allowed under the tax code previously cited), what if instead of a credit against state taxes, they gave a deduction against state taxable income? Call it the "double (or triple) your federal deduction" deduction. If taxpayer donates $1,000 to a qualified gov't charity or whatever we're calling it, then they get $1,000 federal itemized charitable deduction and $2,000 (or $3,000) state itemized charitable deduction, under state law. After all, on the federal return of itemizers, there is a deduction allowed for charitable contributions, and that doesn't seem to conflict with the "expecting something in return" (tax break) rule.

    If the state deduction for charitable contributions was pegged to AGI somehow, it could probably be fine-tuned to work similarly to the credit. I haven't yet tried to work up test cases to get the exact ratio of state to fed deduction, but could if needed. Paying into the state/local public benefit charity would of course be optional for everyone.
    Last edited by Rapid Robert; 05-31-2018 at 08:00 PM.

Similar Threads

  1. 401-K "employee" contributions for clergy
    By Art in forum Main Forum / Tax Discussion
    Replies: 2
    Last Post: 03-02-2015, 11:10 AM
  2. "No Expiration" Means "Expirable"
    By JohnH in forum Main Forum / Tax Discussion
    Replies: 8
    Last Post: 07-15-2012, 08:57 AM
  3. Does "Not for Profit" corp' = charitable contribution?
    By LCP in forum Main Forum / Tax Discussion
    Replies: 4
    Last Post: 03-02-2010, 06:28 AM
  4. "Charitable"? Donation
    By erchess in forum Main Forum / Tax Discussion
    Replies: 9
    Last Post: 12-10-2008, 07:30 PM
  5. question regarding "dependent" and "Qualifying Persons"
    By waywardinparis in forum Main Forum / Tax Discussion
    Replies: 8
    Last Post: 01-16-2008, 06:11 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Disclaimer: This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.