Asheville Charitable Deduction

If there is a city that prides itself on charitable giving, it is indeed Asheville.  From Habitat for Humanity to Brother Wolf Animal Rescue to Goodwill, the citizens of Asheville stand ready to help out their fellow man.  And, in exchange for being so kind during the year, a tax deduction could be in store for you.

Charitable contributions made to qualified organizations may help lower your tax bill.  The IRS has put together the following eight tops to help ensure your contributions pay off on your tax return.

1.If your goal is a legitimate tax deduction, then you must be giving to a qualified organization. Also, you cannot deduct dontributions made to specific individuals, politocal organizations and candidates.  See IRS Publicaion 526, Charitable Contributions, for rules on what constitutes a qualified organization.

2.To deduct a charitable contribution, you must file form 1040 and itemize deductions on Schedule A.

3.If you receive a benefit because of your contribution such as merchandise, tickets to a ball game or other goods and services, then you can deduct only the amount that exceeds the fair market value of the benefit received.

4.Donations of stock or other non-cash property are usually valued at the fair market value of the property.  Clothing and household items must generally be in good used condition or better to be deductible.  Special rules aply to vehichle donations.

5.Fair market value is generally the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.

6.Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution.  For text message donations, a telephone bill will meet the record-keeping requirement if it shows the name of the receiving organization, the date of the contribution, and the amount given.

7.To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgement from the qualified organizations showing the amount of the cash and a description of any property contributed, and wether the organization provided any goods or services in exchange for the gift.  One document may satisfy both the written acknowledgement requirements for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more.  If your total deduction for all noncash contributions for the year is over $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return.

8.Taxpayers donating an item or a group of similiar itmes valued at more than $5,000 must also complete Section B of Form 8283, which generally requires an appraisal by a qualified appraiser.

For more information on charitable contributions, refer to Form 8283 and its instructions, as well as Publication 526, Charitable Contributions. 

Links:

*Search for Charities or download Publication 78, Cumulative list of Organizations

*Publication 526, Charitable Contributions

*Instructions for Form 8283, Noncash Charitable Contributions

IRS CIRCULAR 230 DISCLOSURE:
Pursuant to requirements imposed by the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of avoiding penalties imposed under the United States Internal Revenue Code or promoting, marketing or recommending to another person any tax-related matter.