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Shane-CPA
Shane-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 265
Experience:  Shane Northrop is a Certified Public Accountant, Personal Financial Specialist and a Chartered Global Management Accountant
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I have a large charity cash contribution for 2012 to a church

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I have a large charity cash contribution for 2012 to a church with backup papers. Is their a ceiling for taking this as a deduction this year?

Shane-CPA :

Hello...my name is XXXXX XXXXX I am a Certified Public Accountant. I look forward to assisting you with your tax question.

Customer:

Hello, do you need additional information to answer this question?

Shane-CPA :

In order to take a tax deduction for cash contributions made to a qualified charitable organization, you must qualify to itemize your deductions by exceeding your standard deduction. The standard deduction for 2012 and single is $5,950 and $11,900 for married filing joint.

Shane-CPA :

Generally, an individual's tax deduction is limited to 50% of their Adjusted Gross Income (AGI).

Shane-CPA :

When a married couple files a joint return, the percentage limitations are applied against the couple's aggregate income.

Shane-CPA :

An individual’s contribution base is the taxpayer’s adjusted gross income (AGI), computed without regard to the charitable deduction and any net operating loss carryback ( Code Sec. 170(b)(1)(G); Reg. §1.170A-8(a)).

Customer:

OK, thanks, XXXXX XXXXX is just over 12,000. I worked in a church this year as clergy, I will be filing as a single person and will itemize.

Shane-CPA :

Okay...do you know your total taxable income for the year?

Shane-CPA :

This usually is your wages plus investment income, etc.

Customer:

yes, about 70,000.

Shane-CPA :

Great...then you should have no problem deducting the full $12,000 as an itemized deduction. The deduction will be listed on Schedule A of your personal tax return.

Customer:

Wonderful. Thank you for this, and I don't have any other questions. Very helpful. Goodbye

Shane-CPA :

You're very welcome! Thank you for allowing me to assist you. If you are completely satisfied with the service I provided you today, please provide me with positive feedback so that I may receive credit for my response. If you feel exceptional service was provided, bonuses are greatly appreciated. If I can be of further assistance, please let me know. Have a great day!

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