Planning to give to one of the hurricane relief agencies? Remember that if you itemize on your federal tax return, you can get a deduction. That will allow you to give more.

For example, a taxpayer in the 25 percent tax bracket will save $250 in taxes for a charitable gift of $1,000.

Or look at it another way: If you think you can afford a $1,000 gift, you can actually afford $1,333.

That’s because the 25 percent deduction on $1,333 is about $333, leaving an actual cost of $1,000.

Written receipt required

Keep in mind that the IRS requires a written receipt for charitable contributions of $250 or more.

A cancelled check is not good enough.

Also remember that many charities accept donations of stock or other assets.

If the shares you want to use for a donation have gained value in the time you’ve owned them, give the shares.

That way, you won’t have to pay any capital gains tax on your profit – which means you can give more and get a larger tax deduction on the gift.

If you’ve lost money on the shares, sell them and give the proceeds. By doing this you’ll realize a loss that can save you money on taxes.

The gift will be worth just as much as if you’d given the shares themselves, except for your sales commission, and you can give the tax savings as well.

Energy tax credits

With energy prices soaring, this might be the time to replace those old leaky windows, buy a hybrid car or put a solar water heating panel on the roof.

On the other hand, maybe you should wait a few months.

The Federal Energy Policy Act passed this summer contains a number of tax benefits for people who make their energy use more efficient. Unfortunately, some of the key provisions don’t kick in until 2006.

Buyers can get $2,000 tax deductions on gas-electric hybrid vehicles purchased this year. A taxpayer in the 25 percent bracket would thus save $500 in taxes.

But next year, the same car might save the buyer more than $2,000, due to a more generous tax credit meant to spur hybrid vehicle sales.

The credit will depend on the weight of the vehicle and its fuel efficiency.

Starting in 2006, homeowners will be able to get credits for upgrading insulation and installing energy-efficient doors, skylights and windows.

The credits will be 10 percent of the upgrades’ cost to a maximum of $500, though only $200 can come from windows, for some obscure reason.

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Distributed by Knight Ridder/Tribune Information Services.

AP-NY-09-02-05 1518EDT