Video:Tax Tips For Making Charitable Donationswith Debbie Anderson
Charitable donations are not only good for your soul, they can also help you reduce your tax burden. See our tips on making charitable donations for tax deduction purposes.See Transcript
Transcript:Tax Tips For Making Charitable DonationsHi! I'm Debbie Anderson for About.com!
Charitable donations can be a great tax deduction, so although you should always consult your CPA prior to taking these deduction, today we're going to cover a few tips on things to consider when making charitable donations for tax purposes!
Confirm Tax-Exempt StatusFirst, regardless of whether you're donating cash or property to charity, always double check that the organization you are donating to is a qualified 501(c)(3) tax-exempt organization so you can deduct your donation.
Maintain Excellent RecordsNext, maintain good records of the donations you are making. For example: When donating items, such as clothing or tangible goods, keep a receipt of the appraisal value given to the items you donated to the organization for your records.
Alternatively, when donating cash, keep a copy of the check you wrote and a receipt of your monetary donation that is given to you by the tax-exempt charity organization before deducting this amount on your taxes.
Get Appraisals for High-Priced ItemsWhen donating high priced items, such as a vehicle, make sure you have a written appraisal and acknowledgment letter from the non-profit organization that received your donation that states the value of your donated item and the date of the donation before claiming this charitable tax deduction on your final IRS Tax Return.
File an Itemized Tax ReturnFinally, if your charitable donations do qualify for taking a tax deduction, always remember to file an itemized return for the tax season you are taking charitable donation deductions on your IRS Tax Return.
Consult IRS If You Have QuestionsAs always, consult the IRS.gov government website and your CPA with any questions you have regarding charitable donations before claiming them on your tax return! And with these few tips about charitable donations, you're sure to have a better understanding about making deductions for your charitable donations come tax season!
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