When people talk about a 100 percent deduction, they usually mean amounts that can offset up to 100 percent of adjusted gross income in a particular year. In some recent years, Congress has temporarily allowed qualifying cash gifts to certain public charities to be deducted up to this level if specific elections were made. Those rules typically did not apply to noncash property such as clothing, artwork, or real estate, which usually face lower percentage limits. Gifts to donor advised funds, supporting organizations, or many private foundations also often do not qualify for the most generous caps. To be eligible at any level, the donation must be made to a qualifying organization and be properly substantiated. Taxpayers must check the rules for the specific tax year to see whether any 100 percent provisions are in effect.
