Maximizing your charitable tax deductions can offer significant benefits. Not only does it reduce your taxable income and save you money on your tax bill, but it also allows you to support causes that are important to you. Daffy, a Donor-Advised Fund (DAF), is an excellent option for those looking to maximize these benefits.
One of the key advantages of using Daffy is the ability to deduct up to 60% of your adjusted gross income (AGI) through charitable deductions. This is one of the most generous deductions in the U.S. tax code. Furthermore, Daffy allows you to donate more than just cash. You can deduct donations of property, such as clothing or household goods.
Moreover, Daffy allows you to donate appreciated assets, such as stocks, ETFs, or mutual funds. This is a significant benefit as it allows you to avoid paying capital gains tax on the appreciation and still receive a tax deduction for the full value of the asset. The limit for deducting charitable donations of appreciated assets is 30% of your AGI.
Another benefit of using Daffy is the increase in the standard deduction for all filing classes in 2023. This means that your charitable donations can help you exceed the standard deduction and itemize your taxes for additional savings.
In conclusion, Daffy is a great option for a DAF. It offers a range of benefits that can help you maximize your charitable tax deductions, save money on your tax bill, and support the causes that matter most to you. So, start giving and saving more with Daffy today.
Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.