Ten Tips To Deducting Charitable Gifts
The IRS has released ten tips to help you deduct charitable gifts this tax season. When completing your Schedule A for your federal tax refund, don’t forget to take your charitable contributions as they can add up to a good sized tax deduction. Here are the rules to make sure you get the deduction:
1. Contributions must be made to qualified organizations.
2. You cannot deduct time or services, only money and gifts can be deducted.
3. Any merchandise received in exchange for a gift must reduce the value of your gift for the tax deduction.
4. Fair market value must be used for stock and property donations.
5. Items must be in good condition or better to be allowed.
6. Save your bank records for any money donations you make and save the records with your tax return.
7. Also get a written acknowledgement from the organization when you make a donation greater than $250.
8. IRS Form 8283 must be used when your property contributions exceed $500 in value.
9. You must get an appraisal when donating property valued greater than $5,000.
10. If you donated to a Midwest disaster relief area you get special benefits which you can read about in Publication 4492-B.