Tax deductions
The question of valuation of contributed property should not be taken lightly. tax deductions Tax evasion. If the claimed value is excessive, a donor may be subject to an overvaluation penalty as well as other sanctions. Donee''s Substantiation and Reporting of Charitable ContributionsThe following is a summary of the IRS rules for the substantiation of charitable contributions made to a qualified public charitable organization. If the organization is a qualified public charity, donors are generally allowed to deduct the entire amount of their contributions to it. tax deductions Tax-liens. The deduction, however, is contingent upon the donor''s compliance with a number of substantiation requirements, most of which require the involvement and cooperation of the charitable organization. Contributions of $250 or MoreAny donor who makes a charitable contribution of $250 or more after 1993 must obtain a substantiation of the contribution to obtain a deduction. The substantiation must consist of a written acknowledgment of the donation from the organization. tax deductions California tax forms. If the donation is made in cash, the acknowledgment should state the amount; if the donation is of property, it is sufficient to simply describe the property without having to estimate its value. There is no required format for the acknowledgment; it can be made by post card, letter, or computer-generated form. At a minimum, it should contain the name of the donor, the donee organization''s name and address, the date of the donation, and the amount of cash donated or a description of any donated property. It is not necessary to obtain or include the donor''s tax identification number. The IRS requires that the donor receive the acknowledgment before he files his tax return for the year in which the contribution is made. Thus, the donee organization should provide the acknowledgment at least by year-end. If the donee organization provides some tangible benefit to the donor in return for his contribution, the value of that benefit must be included on the acknowledgement form. For example, if the organization gives contributors a coffee mug or a tote bag in return for their contributions, the acknowledgement form must include the value of that item. There are, however, three exceptions to this rule. The first is for intangible religious benefits (such as the right to attend religious services in return for a contribution); the second is when the item has only a token value. The IRS annually adjusts the value of such "token" items, and we can provide you with the current amount. The third exception is when the donee organization provides membership privileges for a contribution of $75 or less.
Tax deductions
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