A deduction allowed for a gift to a qualified charitable organization is called?

A deduction allowed for a gift to a qualified charitable organization is called?

• A. Gift Splitting
• B. Real Property
• C. Charitable
• D. Life Interest

Answer: (C)

When you donate to a qualified charitable organization, the deduction you can claim is called a charitable deduction (often referred to as a charitable contribution deduction). This deduction lowers your taxable income, within the limits for charitable giving and depending on whether you itemize deductions. The other terms refer to different concepts: gift splitting is a gift tax strategy, real property is land or buildings, and life interest means a right to use property for someone’s lifetime—none of which describe the deduction for charitable gifts.

When you donate to a qualified charitable organization, the deduction you can claim is called a charitable deduction (often referred to as a charitable contribution deduction). This deduction lowers your taxable income, within the limits for charitable giving and depending on whether you itemize deductions. The other terms refer to different concepts: gift splitting is a gift tax strategy, real property is land or buildings, and life interest means a right to use property for someone’s lifetime—none of which describe the deduction for charitable gifts.