Tax Tips for “The Season of Giving”

As the year winds down, are you in a generous mood wanting to contribute
to a charity? If so, keep in mind some “tips” that will impact your tax
return!
1) Contribute to an IRS Qualified Charity. If you are unsure, ask the
organization about its tax-exempt status. Remember, giving gifts to
individuals CANNOT be deducted on your tax return!
2) Keep records of ALL donations. When the IRS audits your return, you
must have cancelled checks, bank or credit card statements, payroll
deduction records or a written statement from the charity that shows the
charity name, the contribution date and the amount of your donation.
3) Now that you are contributing to a qualified organization and have
the records to support your tax deduction, what can you contribute that
you can deduct from your tax liability. You can deduct cash
contributions as well as the fair market value of most property that you
donate. This includes clothes, furniture, children’s toys, etc. You must
determine the fair market value and keep supporting documentation of how
you determined the fair market value of non-cash items you donate.
4) Large item donations have special rules. This would include cars,
trucks and boats. The charity will know these special rules and will
provide you with all the necessary documentation needed to support your
tax deduction.