Your Donations May Cut Your Tax Bill

Are you looking for ways to maximize your tax savings? Consider giving goods or money to an eligible charitable organization before December 31^st. To see if your charity is eligible visit irs.gov. In the website tools click on “Select Check” to search the IRS database for eligible charities. Some agencies may still be eligible for donation deductions even if they are not listed.

To claim the charitable deduction you must itemize your taxes using Form 1040 Schedule A. You must have proof of your donation in the form of a bank record or a written statement from the charity with a description of the items, the amount, and the date of the donation.

Household or clothing deductions must be in good or better condition to be tax deductible with the items limited to their “fair market value”. If the taxpayer claims an item is worth over $500 the taxpayer does not need to meet the “fair market value” as long as there is a qualified appraisal of this item included with the tax return.

All charitable donations of $250 or more must have written proof from the charity. There are special rules for a donation of property such as a car or boat. You can find help determining the value of property on the IRS website.

It’s very important to keep good records of your donations. If you are unsure of what records you need to keep, visit the IRS website for help.   

If we can be of assistance contact our office at (866) 497-9761 to schedule an appointment with our tax advisors.