TIPS OF THE WEEK

 

17/11 - 23/11

 

 

 

IRS TIPS FOR CHARITABLE GIFTS

 

Many people give to charity each year during the holiday season. Remember, if you want to claim a tax deduction for your gifts, you must itemize your deductions. There are several tax rules that you should know about before you give. Here are six tips from the IRS that you should keep in mind:

 

1. QUALIFIED CHARITIES:

 You can only deduct gifts you give to qualified charities. You can also deduct donations you give to churches, synagogues, temples, mosques and goverment agencies.

 

2. MONETARY DONATIONS:

Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statemant from the charity to deduct any gift of money on your tax return. This is a true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution.

 

3. HOUSEHOLD GOODS:

Household items include furniture, furnishings, electronics, appliances and linens. If you donate clothing and household items to charity they generally must be in at least good used condition to claim a tax deduction.

 

4. RECORDS REQUIRED:

You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more.

 

5. YEAR-ENDS GIFTS:

You con deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year it will count for 2014. This is true even if you don't pay the credict card bill until 2015. Also, a check will count for 2014 as long as you mail it in 2014.

 

6. SPECIAL RULES:

Special rules apply if you give a car, boat or airplane to charity.

 

 

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