Charitable Deductions
The most frequently asked tax questions related to Charitable Deductions
Dinner dance - deductible ?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
A donation that provides goods or services must have the fair market value of the goods or services deducted from the contribution amount.
The amount of the deduction is limited to the amount that exceeds the benefit.
The charitable deduction is limited to the amount of the donation, less the fair market value of the dinner and is deducted on IRS Schedule A contributions.
The amount of the deduction is limited to the amount that exceeds the benefit.
The charitable deduction is limited to the amount of the donation, less the fair market value of the dinner and is deducted on IRS Schedule A contributions.
Charitable volunteer work - auto expenses
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
You may deduct the actual travel expenses or a mileage allowance of 14 cents a mile on IRS Schedule A as a non-cash contribution.
Political contributions - deductible?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
No. Contributions made to political campaigns, political action committees or lobbying committees are not deductible.
Cancer Society - charitable donation of stock
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
You are allowed to claim the stocks as a charitable deduction on IRS Schedule A subject to AGI limitations the appreciated fair market value, not the cost.
The securities must be traded on a established securities market.
The securities must be traded on a established securities market.
Sports club expenses - deductible ?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
A sport's organization that provides athletic equipment or facilities would not be considered a qualifying organization.
In general, qualifying organizations include, but are not limited to: Religious entities such as churches or synagogues; Charitable organizations such as the Salvation Army, Girl Scouts or Red Cross; Scientific/Educational entities such as hospitals or colleges;
Domestic such as non-profit veterans organizations; or a Fraternal lodge organization. Speak to your local CPA who has an IRS list of approved tax-exempt organizations.
In general, qualifying organizations include, but are not limited to: Religious entities such as churches or synagogues; Charitable organizations such as the Salvation Army, Girl Scouts or Red Cross; Scientific/Educational entities such as hospitals or colleges;
Domestic such as non-profit veterans organizations; or a Fraternal lodge organization. Speak to your local CPA who has an IRS list of approved tax-exempt organizations.
Clothing contributions - How to calculate
Asked Monday, September 11, 2000 by an anonymous userCPA Answer:
Usually you can use the average (poor, average, perfect condition)fair market value method.
Speak to your local CPA. He/She usually has checklist from a recognized IRS charity such as the Salvation Army with recommended non-cash (clothing) contribution deduction amounts.
When the value of this donation is more than $500, IRS Form 8283 is required to be filled out.
Speak to your local CPA. He/She usually has checklist from a recognized IRS charity such as the Salvation Army with recommended non-cash (clothing) contribution deduction amounts.
When the value of this donation is more than $500, IRS Form 8283 is required to be filled out.
Charitable contributions - Proof of deductions
Asked Monday, September 11, 2000 by an anonymous userCPA Answer:
For contributions of $250 or less, a cancelled check or credit card statement is sufficient.
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
Car Donation - Form 8283
Asked Friday, August 18, 2000 by an anonymous userCPA Answer:
If the fair market value of your donation is greater than $500. you must complete Section A of Form 8283 – Non Cash Charitable Contributions.
For non-cash contributions of more than $5,000, an appraisal is required. In that case, you must also fill out Section B of Form 8283.
The IRS is aware that certain organizations are issuing inflated blue book value statements regardless of the condition of the vehicle.
You should consider taking a picture of the vehicle at the date of donation for substantiation of the condition.
You may also consider not claiming the full value that was given to you from the charitable organization. Speak to your local CPA for his or her opinion on the amount of the contribution you should claim.
For non-cash contributions of more than $5,000, an appraisal is required. In that case, you must also fill out Section B of Form 8283.
The IRS is aware that certain organizations are issuing inflated blue book value statements regardless of the condition of the vehicle.
You should consider taking a picture of the vehicle at the date of donation for substantiation of the condition.
You may also consider not claiming the full value that was given to you from the charitable organization. Speak to your local CPA for his or her opinion on the amount of the contribution you should claim.