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These exceptions are identical to those for the $250 substantiation requirement, discussed above, and include contributions for which the donor receives only religious benefits and the receipt of items which have only a token value. tax shelters Texas sales tax. Contributions of Property with a Value of More Than $5,000If the donee organization should receive a contribution of property with a value of more than $5,000, it may be subject to certain IRS reporting requirements. These requirements apply if: (1) the organization received a contribution of property (other than cash or publicly traded stock) for which the donor took a deduction of more than $5,000; and (2) the organization sells the property within two years of its receipt. If these conditions apply, the organization must report the sale to the IRS, primarily so that the IRS has a means of determining that the amount of the donor''s deduction was not overstated. tax shelters New york state income tax. This requirement applies regardless of whether the donor is an individual or a corporation. The report is filed on IRS Form 8282, and must include: (1) the name, address, and taxpayer identification number of the donor; (2) the donee organization''s name, address, and identification number; (3) a description of the property; (4) the date of the contribution; (5) the date of disposition of the property; and (6) the amount received for it. Because of this reporting requirement, it is advisable that any time the organization receives a contribution of property (other than cash or publicly traded stock) with a value of more than $5,000 it must also obtain the donor''s name, address, and taxpayer identification number. tax shelters Texas sales tax. The organization may need this information if it is later required to report a sale of the property to the IRS. SummaryThe reporting requirements imposed on charities in connection with contributions have become increasingly burdensome and complex. Your organization should, however, be careful to comply with the requirements described above to avoid IRS penalties and to assist your donors in receiving the largest possible tax deduction. I would be glad to advise a donee organization on the application of these rules to its current fund raising practices, as well as to any new fund raising programs that it may be contemplating.
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