For example, consider an individual who has $10 million of AGI and makes a $10 million cash contribution to a public charity in 2021. Previously, the income tax deduction was limited to $6,000,000. For donations made in 2021, new legislation enacted this past March (the CARES Act) allows a charitable contribution deduction for the full $10 million. Note: the higher AGI limit applies only to contributions made directly to public charities and not to other charitable entities, such as donor-advised funds, supporting organizations, or private foundations.
With proper planning, there is still time left in 2020 to take advantage of this benefit. There has never been a better time to give.
For questions or further information, contact a member of our Tax Services Team.