Tax Deductible Donation Top Ten Tips

Slide 1: 

Daniel Stoica Accounting Professional Presents

Slide 2: 

Tax Deductible Donation Top Ten Tips When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. If you made qualified donations last year, you may be able to take a tax deduction if you itemize on IRS Form 1040, Schedule A. Ten tips to help ensure your contributions pay off on your tax return: Courtesy of: www.DanielStoica.com

Slide 3: 

Tax Deductible Donation Top Ten Tips 10. Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates. Courtesy of: www.DanielStoica.com

Slide 4: 

Tax Deductible Donation Top Ten Tips 9. You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance. Courtesy of: www.DanielStoica.com

Slide 5: 

Tax Deductible Donation Top Ten Tips 8. If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. Courtesy of: www.DanielStoica.com

Slide 6: 

Tax Deductible Donation Top Ten Tips 7. Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles. Courtesy of: www.DanielStoica.com

Slide 7: 

Tax Deductible Donation Top Ten Tips 6. Clothing and household items donated must generally be in good used condition or better to be deductible. Courtesy of: www.DanielStoica.com

Slide 8: 

Tax Deductible Donation Top Ten Tips 5. Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given. Courtesy of: www.DanielStoica.com

Slide 9: 

Tax Deductible Donation Top Ten Tips 4. To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more. Courtesy of: www.DanielStoica.com

Slide 10: 

Tax Deductible Donation Top Ten Tips 3. If your total deduction for all noncash contributions for the year is over $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return. Courtesy of: www.DanielStoica.com

Slide 11: 

Tax Deductible Donation Top Ten Tips 2. Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser. Courtesy of: www.DanielStoica.com

Slide 12: 

Tax Deductible Donation Top Ten Tips 1. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Courtesy of: www.DanielStoica.com

Slide 13: 

For more Tax Information Visit: Daniel’s Website → www.DanielStoica.com Daniel’s Blog → www.DanielStoica.com/blog Daniel’s Articles → www.DanielStoica.com/articles Courtesy of: www.DanielStoica.com