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Triple Play: Tax-related things to consider when donating time, assets this holiday season

Triple Play is a weekly NJBIZ feature that asks top executives in New Jersey to talk about three things related to their industry.

Richard Bloom is a partner at the accounting firm WeiserMazars LLP, with more than 20 years of experience delivering specialized personal tax and financial planning services to high net worth individuals.

We asked Richard for three tax-related things to consider when donating time and assets this holiday season:

Time is not money: While a donation of one’s time, such as volunteering at a soup kitchen, is not tax-deductible, costs associated with the volunteering, such as related travel expenses, are deductible for federal income tax purposes.

Percentage limitations: A donation of assets, such as cash and marketable securities, is deductible for federal income tax purposes. A cash contribution to a public charity is deductible up to 50 percent of the donor’s adjusted gross income. A contribution of marketable securities held for more than one year to a public charity is deductible up to 30 percent of the donor’s adjusted gross income. Contributions in excess of the allowable limit can be carried forward to future tax years.

Consider a DAF: With Donor Advised Funds (DAF), the donor relinquishes control of the cash and securities donated, but the donor can still direct the investments and advise the sponsoring organization with respect to what charities receive the assets in the DAF and when the assets are disbursed.

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