Vicki Venable, Enrolled Agent
New rules for charitable contributions....
what is required to deduct them?
Noncash Under $250
1. Name of organization
2. Date and location of contribution
3. Reasonable, detailed description of contributed property
4. Fair market value and method of determining the value
Noncash $250 to $500
1. Same as above plus
2. A written acknowledgment from the organization. The acknowledgment must contain the name and address of the organization, date and location of the contribution of the property, description of the property. It must also state whether any goods or services were provided to the donor in return for the contribution and the fair market value of the goods and services provided.
Noncash $501 to $5,000
1. Same as all the above plus
2. The taxpayer's records must show how the property was acquired, the date the property was acquired, your cost of the property.
Noncash More Than $5,000
1. Same as all the above plus
2. A written appraisal of the donated property.
Please note: In addition to the above rules for noncash contributions, if your total noncash contributions for the year are over $500 you must file form 8283, itemizing all contributions with date of purchase, purchase price, value of property contributed, ID#, name and address of charity. No deduction is allowed for donated clothing or household goods unless they are in at least "good used condition".
Cash and check under $250
1. Bank record or cancelled check or
2. Written acknowledgment from the charity documenting the date and amount.
Cash and check $250 or more to one organization
in one day
1. Written substantiation from the charity (cancelled check is not sufficient).
Payroll deduction contributions
1. Under $250; you can use your W-2, pay stub or documentation from employer.
2. $250 or more; you must have a pledge card or other document prepared by the charity in addition to the W-2
and/or
pay stub.
The above is meant to be a guideline only for tax years beginning after August 17, 2006. Additional rules and documentation may be required for items such as vehicles, appreciated property, amounts made partially for goods or services. Please consult one of Venable Accounting's Tax Advisors at 813-949-4343 for your specific circumstances.
