1. Tax Deductions for Monetary Donations
When you donate money to A Hero and a Horse, you may qualify for a charitable deduction on your federal income tax return.
How it works:
If you itemize deductions on your tax return, you can deduct the full amount of your cash donation up to 60% of your adjusted gross income (AGI). For larger gifts, excess amounts can often be carried over and deducted in future tax years.
Example:
A $5,000 donation to A Hero and a Horse could reduce your taxable income by $5,000, depending on your tax bracket and filing status.
2. Tax Benefits for Donating Goods or Equipment
Non-monetary donations, such as vehicles, horse equipment, or construction materials, can also qualify as tax-deductible contributions.
Fair Market Value (FMV):
You can deduct the FMV of the donated items, provided you have proper documentation. For goods valued over $500, the IRS requires Form 8283, and for donations exceeding $5,000, an independent appraisal may be needed.
Example:
If you donate a $10,000 tractor, you may be eligible to deduct the appraised value, reducing your taxable income accordingly.
3. Land Donations and Their Unique Advantages
Donating land to A Hero and a Horse offers not only substantial tax benefits but also leaves a lasting legacy.
Charitable Deductions for Real Estate:
The FMV of the land can typically be deducted from your income, providing significant tax savings.
Reduction in Property Taxes:
Once the land is transferred to A Hero and a Horse, you are no longer responsible for property taxes on it.
Avoiding Capital Gains Taxes:
Donating land instead of selling it helps you avoid capital gains taxes on the appreciated value, which can be particularly advantageous for properties that have increased substantially in value.
Partial Land Donations:
If you own or are purchasing property with sections that are unsuitable for building —you can donate these portions. For example, donating 10 non-buildable acres out of a 100-acre property allows you to maximize the land’s value while supporting a meaningful cause. The donation may still qualify for tax deductions based on its appraised value.
4. Benefits for Businesses
Corporate donations to A Hero and a Horse can yield financial benefits for businesses, too.
Tax Deductions for Charitable Contributions:
Businesses can deduct up to 10% of their taxable income for charitable contributions, including monetary gifts, goods, or services.
Brand Recognition and Goodwill:
Partnering with A Hero and a Horse aligns your business with a meaningful cause, enhancing your reputation and fostering goodwill among customers and employees.
5. IRA Charitable Distributions
If you’re 70½ or older, you can donate directly from your IRA through a Qualified Charitable Distribution (QCD).
Advantages:
These donations count toward your required minimum distribution (RMD) and are excluded from your taxable income, making it a win-win scenario.
Why Support A Hero and a Horse?
Your donation to A Hero and a Horse supports critical programs that:
Rescue and rehabilitate draft horses destined for slaughter.
Provide equine therapy to veterans and first responders living with PTSD.
Empower at-risk youth with valuable skills and a sense of purpose.
Beyond these immediate impacts, your contribution helps build a brighter future for individuals and animals alike.
Leave a Legacy of Healing
When you support A Hero and a Horse, you’re not just making a financial decision—you’re joining a mission to transform lives. Whether it’s through a monetary gift, donated goods, or land, your generosity creates ripples of change that extend far beyond the present.
Ready to make a difference? Reach out to us at aheroandahorse@gmail.com or call 630-888-5985 to discuss how you can support our mission and maximize your financial benefits.
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