It is important to consider the IRS regulations for itemized claims when it comes to non cash charitable donations. Below are some considerations every taxpayer should review in order to claim charitable donations as tax deductible. If you still have questions you can always contact a live representative at (888)-228-7320 or contact Giving Center here for more information!
Are Itemized Deductions Really Worth It?
Traditionally, you would always file for itemized deductions in order to claim your charitable donations. But before you jump into itemization this time, do the math. Calculate your standard deductions (this number is adjusted every year for inflation). Then, add up your deductible expenses, including: real estate taxes, mortgage int
erest, and charitable donations. Finally, compare the two numbers. If your itemized deduction is higher than your standard deduction, then it makes sense to file for the itemized deduction.
Only Claim Charitable Donations, If They’re in “Good” ConditionIn an effort to prevent scam artists from taking advantage of the non-cash charitable giving deduction, a 2006 law was passed requiring that all goods given to charity must be in “good” or “better” condition. This law was intended to prevent taxpayers from using charities like Goodwill as dumping grounds for household items that really should have gone to the dump. The law was also designed to prevent taxpayers from filing claims that were much too high.
What Non-Cash Items Can You Donate?Giving Center accepts a wide array of non cash charitable donations and operate across the United States. Click on any of the links below for more information.
How to Claim More Than $500 in Charitable DonationsIf you’re planning on claiming over $500 in non-cash charitable donations for the year, you will need to also fill out Form 8283. Giving Center will provide you with Form 8283 or a Form 1098C for vehicle donations.This particular form does make it possible for you to inflate their donated properties’ value. But, tax examiners are taking a close look at these forms and may ask you to produce further documentation to verify the property’s value. Be prepared with proper documentation to back up your claims.
No Minimum Donation Amount
One benefit of charitable donations is that the donated item’s value doesn’t have to equal a minimum amount. You can claim donated items worth as little as $5, if you so choose.
Plus, you can also claim non-cash charitable donations besides physical goods, including: appreciated assets, a portion of the cost of a ticket to a charity event, or the gas you used driving for a charity or non-profit.
Remember to Document Your Donations Properly
If you give goods instead of cash donations, the IRS will ask you to value that item and support it with documentation. If you donate your vehicle to Giving Center, make sure to get a receipt. The receipt will help you support your claim for the value of that item.
A 2007 law requires that you to have receipts and/or clear documentation to support every donation you claim, regardless of the amount. Documentation is especially important when it comes to larger gifts. For gifts over $250 in value, the IRS requires that you show an official record of the donation. This official record could be a statement from your bank, credit card company, or a written statement from the charity showing Giving Center’s name, the date, and 501c3 EIN as well as the amount of the contribution.Giving Center will provide you with the documentation and support you need to receive your tax deduction.
Other IRS Rules to Keep in Mind
All charitable donations must be made to “qualified organizations.” This means that the organization is recognized by the IRS. Giving Center is an IRS Approved 501(c)3 non profit organization operating across the United States.
For more information you can speak to a live representative at (888)228-7320 or visit http://www.givingcenter.org today.