What is the amount of property sales amount can I donate to 501c3 to offset how much I pay federal?

[phyzx]

I sold a single family rental in Colorado in 2022. I am a resident of Colorado. I need some insight as to any information about balancing the capital gains amount of $273k gain I can put towards a 501c3.

I have a guess that the tax owed is in the ballpark of $50k. Can I donate all of that to charity and not pay the fed?

Probably a pipe dream but if I have to pay then I would like to add a little power to my outgoing cash flow.

I thought I would ask this question before I start preparing and entering for 2022 which would take an amount of time that would detract from any expedient answer here.

Thank you for any advice, guidance or leadership in this issue.

[tagteam]

You will get other answers here, but you can start with the information at the link below (IRS publication).

https://www.irs.gov/publications/p526#en_US_2021_publink1000229756

[Bsch4477]

If I understand correctly you have already sold or will sell your property and incurred a large capital gain. You can’t just donate that gain to charity and not pay tax on the gain. You first pay taxes on the gain. Then if you want to donate the 273K amount to charity, your tax savings is that amount times your marginal tax rate assuming that you itemize. 

[Mike9241]

even if you donate the cash proceeds to charity you'll still be subject to depreciation recapture and capital gains tax on the balance of the gain. 

In the case of any contribution of cash to any 501(c)(3)s}, the deductible limit for any taxable year beginning after December 31, 2017, and before January 1, 2026, shall not exceed 60 percent of the taxpayer’s adjusted gross income (computed without regard to any net operating loss carryback to the taxable year under section 172).

if AGI is $273K the max cash contribution is about $164K and excess would carry over. you really need to do a tax projection. things you haven't mentioned could affect your taxes like the alternative minimum tax.

[rjs]

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@phyzx wrote:

I have a guess that the tax owed is in the ballpark of $50k. Can I donate all of that to charity and not pay the fed?

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Donate all of what? $50,000? A cash donation is subtracted from your taxable income, not from your tax. If you are, for example, in the 24% tax bracket, a donation of $50,000 will reduce the tax you owe by $12,000 (24% of $50,000).

Are you thinking about donating the entire gain, or just the amount of the tax? The previous answers assume that you want to donate the entire gain.

[phyzx]

Just ~$50k. I would have more answers if I start entering my taxes into Turbotax desktop now. This would sure up any tax projections. I have never had to do taxes before Jan1. Now I see why this happens.