You have great flexibility in timing your deductible gifts to charities. If you're thinking of making a substantial gift to your alma mater, for example, doing so before the end of the year locks in the deduction for the current year. If you normally give $100 a month to your church, making the January contribution by December 31 boosts your write-off by that amount. If you make a pledge to make future contributions, however, you don't get the deduction until you actually make the gifts.
There's a special advantage to giving away appreciated property - such as stock - rather than cash. You can deduct the current value of the stock rather than what you originally paid for it, and you avoid having to pay tax on the profit that built up while you owned it.
If you routinely go through closets for used clothing to give away, find time for a year-end sweep. Making the donation by New Year's Eve earns you a deduction for the current year.
Did you contribute cash, time or other goods and services to benefit the victims of Hurricane Katrina? See which provisions of the Katrina Emergency Tax Relief Act apply to you.
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