Tax Deduction Limits on Charitable Gifts refer to the maximum amounts that taxpayers can deduct from their taxable income for contributions made to qualifying charitable organizations.
In general, for individual taxpayers, the limit is typically 60% of their adjusted gross income (AGI) for cash donations to public charities. For donations of property, the limits may vary, often capped at 30% or 50% of AGI, depending on the type of property and the organization receiving the gift.
For example, if an individual has an AGI of $100,000 and makes a cash donation of $70,000 to a qualifying public charity, they can only deduct up to $60,000, exceeding the 60% limitation on cash contributions. Any excess contribution may be carried forward to future tax years, subject to the same limits.
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