Giving To Charities Tax Deductions And Such

Giving To Charities Tax Deductions And Such



Giving to​ Charities – Tax Deductions and Such
The tax code in​ the​ United States contains many provisions to​ promote certain behavior .​
One area of​ behavior is​ the​ promotion of​ giving to​ qualified charities .​
Giving to​ Charities – Tax Deductions and Such
In the​ rush to​ get tax returns prepared and filed,​ many people absentmindedly forget to​ include deductions for contributions to​ charities .​
If you​ itemize deductions on​ your tax return,​ this can be an​ expensive omission .​
Pursuant to​ relevant provisions of​ the​ tax code,​ you​ can take significant deductions if​ you​ donate money or​ goods to​ a​ qualified charity .​
a​ qualified charity is​ one that is​ registered with the​ IRS as​ a​ 501c3 entity .​
The 501 designation refers to​ the​ relevant section of​ the​ tax code .​
Importantly,​ not all charitable organizations are qualified with the​ IRS .​
You can go to​ the​ IRS web site and search through a​ list to​ see if​ a​ particular group is​ included .​
If they are not,​ red flags should go be raised .​
Before claiming your deduction for donations,​ there are a​ couple of​ things to​ keep in​ mind:
1 .​
Politics – you​ may feel strongly about certain political ideologies,​ issues or​ candidates .​
You can contribute to​ the​ causes,​ but you​ can’t deduct the​ contributions as​ charitable giving .​
2 .​
You can only deduct contributions actually made for the​ year in​ question .​
If you​ forgot to​ claim donations on​ your tax return for the​ 2004 year,​ you​ cannot claim them on​ a​ 2018 return .​
Instead,​ you​ should go back and amend the​ 2004 return .​
3 .​
If you​ make a​ contribution for a​ good or​ service,​ you​ can only deduct the​ amount you​ contribute which is​ in​ excess of​ the​ fair market value of​ the​ good or​ service .​
For instance,​ many charitable groups will hold auctions to​ raise money .​
If your winning bid for a​ two night hotel stay is​ $800,​ you​ can claim a​ deduction for the​ bid amount minus the​ normal cost .​
You cannot just write off $800 .​
4 .​
In general,​ donations of​ stock or​ property should assigned the​ fair market value,​ not an​ arbitrary figure based on​ your opinion .​
Big ticket items should be supported with an​ appraisal .​
5 .​
The rules for donating automobiles have changed .​
The charitable group should have sent you​ correspondence regarding the​ amount it​ was able to​ sell the​ vehicle for .​
This is​ the​ amount you​ can deduct,​ not the​ blue book amount previously allowed .​
If the​ charity has not sent you​ anything,​ call them to​ get written confirmation .​
They know it​ has to​ be done under new IRS regulations .​
Donating to​ charities is​ positive moral step .​
Make sure to​ claim your deductions to​ reap savings on​ your taxes.




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