Are you worried about the loss of many of your favorite income tax deductions?
If you itemize on your federal tax return, there's one tax deduction that's as dependable as ever - your contribution to Wofford. We recognize that your primary reason for a gift is your desire to strengthen Wofford, but such giving also has tangible personal benefits for you. Here are summaries of several methods of making outright gifts and descriptions of key features to help you decide which is best for you.
Gifts of Cash
This is the simplest way to give, but it's a good idea to know the basic rules. You can deduct a cash gift for income tax purposes only in the year which you contribute it. A pledge or promissory note is not deductible until it is paid. Your cash gifts are deductible up to 50% of your adjusted gross income for the taxable year. Any excess is deductible over the next five years.
Gifts of Securities
If you contribute long-term appreciated securities to Wofford, you get a two-fold income tax benefit: a charitable deduction for the full present fair market value, and no tax on the appreciation. The limit on deductibility in any tax year is 30% of your adjusted gross income; any excess is deductible over the next five years.
If you want to give securities to Wofford on which you have a loss, consider selling them instead and donating the proceeds to Wofford. You will then have a loss deduction in addition to the charitable deduction.
Gifts of Tangible Personal Property
Maybe you would like to contribute an art object, prized collection, or antiques. Such tangible personal property is subject to special IRS rules.
Example: You acquired a valuable painting that would now generate long-term capital gain if sold. You would like to give this to Wofford and take a deduction for its full market value. You can do this if the painting's use is related to our exempt function. But if you're unable to establish that we can use the gift property for a purpose related to our function, you can deduct only the cost basis.This kind of gift is generally deductible up to 30% of your adjusted gross income if it meets the related-use test. If not, and you elect to deduct its cost, the 50% limit applies. The five-year carryover is allowed for any excess deduction.
If you have concerns not addressed here, please contact the Office of Advancement at 864-597-4200 or firstname.lastname@example.org.