With 2006 coming to an end soon, it is time to make any last minute deductions for the tax year. The IRS published a new article yesterday concerning deductions, titled, "Recent Tax Law Changes May Affect People Giving to Charity: IRS Offers Tips for Year-End Donations".
Brief summary of article:
New Tax Break for IRA Owners
Rules for Clothing and Household Items:
To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better...
Guidelines for Monetary Donations:
To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the
charity showing the name of the charity and the date and amount of the contribution....
To help taxpayers plan their holiday-season and year-end donations, the IRS offers the following
additional reminders:
Contributions are deductible in the year made.....
Check that the organization is qualified.....
For individuals, only taxpayers who itemize their deductions on Schedule A can claim a deduction for charitable contributions.....
For all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes a description of the donated property......
The deduction for a motor vehicle, boat or airplane donated to charity is usually limited to the gross proceeds from its sale......
With 2006 coming to an end soon, it is time to make any last minute deductions for the tax year. The IRS published a new article yesterday concerning deductions, titled, "Recent Tax Law Changes May Affect People Giving to Charity: IRS Offers Tips for Year-End Donations".
Brief summary of article:- New Tax Break for IRA Owners
- Rules for Clothing and Household Items:
- Guidelines for Monetary Donations:
- To help taxpayers plan their holiday-season and year-end donations, the IRS offers the following
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To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better...
To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the
charity showing the name of the charity and the date and amount of the contribution....
additional reminders:
Contributions are deductible in the year made.....
Check that the organization is qualified.....
For individuals, only taxpayers who itemize their deductions on Schedule A can claim a deduction for charitable contributions.....
For all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes a description of the donated property......
The deduction for a motor vehicle, boat or airplane donated to charity is usually limited to the gross proceeds from its sale......
For the complete article: http://www.irs.gov/newsroom/article/0,,id=164997,00.html