Time to get those last minute deductions in for the 2015 tax year…
For most people, giving to charity is simply a matter of goodwill and generosity, but there are tax benefits, and knowing how to get a tax deduction can allow you to give even more.
Here are some year-end tax tips to save money and spare headaches in April
For instance if you have a mortgage, making your January payment in December will give your extra interest to deduct, you can also pre-pay your property state or local taxes that you would otherwise pay in January.
There are a number of charities that are winning to take a monetary tax-deductible donation right now….from the Majaree Mason Center to Povarello House.
Natalie Caples is from the Community Food Bank of Fresno: “Our final pushes are really around “end of year” giving, so making sure you get your tax deductible donation in before December 31st …that’s really our big push.”
If you donate a car or truck, you can deduct only the amount the charity gets when it sells the vehicle, and that could be less than the blue book value, and the charity should send you a notification after the vehicle is sold.
Ellen Stark, the Senior Editor-At-Large of Money Magazine has this tip when it comes to mortgage deductions: “If you have a mortgage, making your January payment in December will give your extra interest to deduct, you can also pre-pay your property state or local taxes that you would otherwise pay in January.”
In past years, investors could contribute IRA assets to charity and avoid tax on withdrawals, but that rule has expired. last year, Congress reinstated it in December for the 2014 tax year, but there’s no guarantee that will happen this year.
You can avoid capital gains tax on investments by donating stocks or assets that have grown in value before the fund company makes its annual distribution.
Before making donations, be sure your charities qualify for tax-exempt deductions – you can use the IRS Select Check tool, to see what is in the database of deductions.
Churches, synagogues, temples, mosques and government agencies are eligible for tax-deductible donations even if not in the IRS Select Check database.
