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Long-Term & Short-Term

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Making an irrevocable gift to charity may allow you some level of income tax charitable deduction if you itemize deductions on your income taxes. Gifts to Clarkson of cash (e.g., check, credit card) may generally be deductible at the full amount of your gift, up to 60% of your Adjusted Gross Income (AGI), when you file your itemized income taxes.

For gifts to Clarkson of securities or property, however, the nature of that deduction depends on whether the property is "held" "long-term" or "short-term." This simply refers to how long you have owned ("held") the property.

Holding property long-term means that you have owned it for at least "12 months and one day." Giving long-term property to Clarkson may allow you to deduct the full fair market value of that property up to 30% of your Adjusted Gross Income.

Giving short-term property (you have owned it for less than 12 full months) allows a deduction of the cost basis (what you originally paid for it), up to 60% of your AGI. This could be advantageous if the market value is still close to the cost basis.

Whether short-term or long-term, if your total gifts made in any one year exceed the 30% or 60% limit, you may "carryover" any remaining balance to deduct on your income taxes for up to five additional years.

Note: The issues surrounding long- and short-term property become very complicated. It is important that you consult your financial and tax advisors and Clarkson before you make or plan your gift.

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This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift. (rev. 2/2018).