Tax Tips

Cash and noncash donation deductions in 2026

The new year brings changes that affect how taxpayers think about charitable contributions of all kinds. You may have heard that the One Big Beautiful Bill Act allows a tax break for taxpayers who don’t itemize deductions. As of 2026, these taxpayers can deduct up to $1,000 on their tax returns ($2,000 on a joint return). However, be aware that this applies only to cash donations. Donating boxes of household items is excellent, but to get a tax break for noncash donations, you’ll need to itemize your deductions. Be sure to secure proper documentation from the qualified charities you donate to. Noncash donations of less than $250 must be supported by a receipt, showing your name, address, date of donation and detailed descriptions of the items. For donations valued at $250 to $500, you must also obtain a “contemporaneous written acknowledgment” from the charity.

Don’t overlook the cost of local business trips

Most small businesses incur local transportation costs during the year. The cost of commuting to and from your company isn’t deductible, but the cost of local trips you make for business purposes generally is. That could include anything from a visit to a supplier to a business banking trip. Your deduction can be calculated using actual expenses or the standard mileage rate (which changes each year), plus tolls and parking. Actual expenses include depreciation (subject to limitations), gas, repairs, maintenance, insurance, tolls, parking, loan interest and any other related costs allocable to the business portion of using the vehicle. It’s important to jot down trips in a mileage log as you incur expenses. Important points to record include dates, approximate miles, the business purpose of each trip, and other vehicle-related expenses, such as parking fees.

Gift tax exclusions for 2026

With a new year comes many changes. Some tax figures are adjusted for inflation, while others are adjusted less often. For 2026, the gift tax exclusion remains at $19,000, the same as in 2025. That’s the amount you can give in cash or property to any number of family members or friends without the need to file a federal gift tax return. If you’re married and you and your spouse agree to split gifts, you can give up to $38,000 to any recipient. This exclusion is annually adjusted for inflation in increments of $1,000 as needed.

For taxpayers with larger estates, there’s also a generous lifetime gift and estate tax exemption. In 2026, that figure is $15 million (up from $13.99 million in 2025). Unless your estate or your gifts exceed the exemption, you’ll generally have no estate tax liability. Contact us with questions.

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