You are here: Home Day to Day Living Charity: Giving To Tax Deduction For ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Charity: Giving To

Tax Deduction For Charitable Donations

« Previous

6/6

Charitable donations are tax deductible to a maximum in any year of 50% of your adjusted gross income for donations of cash, and 30% for appreciated securities.

The law requires that every gift, no matter how small, must be supported by either a cancelled check or a receipt or letter from the charity. Donations over $250 require a letter or receipt from the charity.

Employer records are an acceptable way of proving donations made through payroll deductions.

For gifts of property:

  • The deduction is for the value of the property at the time the gift is made (not the cost). Tax software programs generally have a listing of current values. You can also see valuations at the Salvation Army's website: www.salvationarmyusa.org/usn/www_usn.nsf/vw-dynamic-index/85256DDC007274DF80256B80003D22FC?Opendocument offsite link
  • You need proof that is in "good used" condition. The IRS hasn't defined what that means. Photos are one way of proving the condition.
  • You need a receipt for any donation worth at least $250, including a description of the property. For contributions over $500, an extra form (IRS form 8283) has to be included in your tax return describing the property. Property valued at more than $5,000 needs to be appraised.

With respect to used cars, as a general matter, the deduction is limited to what the charities sells the car for. You can deduct the fair market value if the charity gives or sells the car to a needy individual in "direct furtherance" of the charity's purpose.

NOTE: If you use your own car in service of charitable groups, you can consider 14 cents per mile to be a charitable contribution in 2018 plus what you pay for parking and tolls..

Reviewed by Jerry S. Chasen, Esq.

Chasen & Associates, P.A.

Miami, FL

www.ChasenLaw.com offsite link

To Learn More


Please share how this information is useful to you. 0 Comments

 

Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.