Jinhee Park, CPA
Tax Manager
Charitable giving can make a real difference for your favorite causes—and for your tax bill. Here’s what you need to know about the latest rules, including how to maximize your deduction and what records you’ll need for different types of gifts.
Key Deduction Limits for 2025
- Cash donations: Deduct up to 60% of your adjusted gross income (AGI) for gifts to public charities.
- Appreciated assets (like stocks): Deduct up to 30% of your AGI.
- Standard deduction: $15,000 for single filers and $30,000 for married couples; you must itemize to deduct charitable gifts.
Donating Appreciated Stock: A Tax-Smart Move
Donating appreciated stock (held over a year) directly to charity or a donor advised fund lets you:
- Deduct the full fair market value of the stock.
- Avoid paying capital gains tax on the appreciation.
You’ll need to report the donation on Form 8283 if the total value of your non-cash gifts is over $500.
Noncash Donations: Antiques, Art, and Valuables
Donating antiques, artwork, jewelry, or other valuable items can also yield a deduction—but documentation is key:
- For gifts valued at $500 or less: Keep a receipt with the charity’s name, date, and description of the item.
- Over $500: File Form 8283 with your tax return.
- Over $5,000: You’ll need a qualified appraisal and must complete Section B of Form 8283.
What Records Do You Need?
| Donation Type | Amount | Documentation Required |
| Cash | < $250 | Bank record or receipt from charity |
| Cash | ≥ $250 | Written acknowledgment from charity (amount, date, no goods/services received) |
| Noncash (stock, property) | ≤ $500 | Receipt from charity |
| Noncash | $501–$5,000 | Receipt + Form 8283 |
| Noncash | > $5,000 | Receipt + Form 8283 Section B + qualified appraisal |
Special Note: Antique or Valuable Donations
For antiques, art, or collectibles over $5,000, a qualified appraisal is required. The appraisal should:
- Be done by a professional appraiser.
- Be attached to your tax return.
- Clearly describe the item, its condition, and how the value was determined.
Tips for a Smooth Tax Season
- Make donations by December 31 to count for the current tax year.
- Keep all records for at least three years after filing.
- Double-check the charity’s IRS-qualified status before donating.
If you’d like to discuss your charitable contributions with a WFY advisor, please contact WFY here for any further questions. You can sign-up for our newsletter here to receive more updates.
Wright Ford Young & Co. is headquartered in Irvine, CA and is one of the largest local CPA firms in Orange County. WFY is a full service corporate accounting firm offering audit, tax, estate and trust, and business consulting services to closely held company and family business owners. More information about our Firm can be found at www.cpa-wfy.com.