Taxpayers who itemize are permitted to deduct gifts to qualified charitable institutions of up to 50 percent of their adjusted gross income each year for gifts of cash, and up to 30 percent for gifts of appreciated property. Pursuant to Title 26 U.S.C. Section 170(c)(1), gifts to the Armed Forces Veterans Homes Foundation qualify as such deductions. If a gift plan would result in a gift of more than this amount in a given year, the excess can be deducted over an additional five-year period. Under federal income tax law and some state laws, property that has increased in value and has been held for more than 12 months may be deductible at full market value, rather than at the original market cost. The result is an avoidance of capital gains tax, which provides donors an option to give a larger gift than otherwise might be possible.