Get the latest news, exclusives, sport, celebrities, showbiz, politics, business and lifestyle from The VeryTime,Stay informed and read the latest news today from The VeryTime, the definitive source.

A Charitable Deductible Tax List

20
    • Charitable donations may be deductible if you file an itemized tax return.TAX TIME image by brelsbil from Fotolia.com

      Certain charitable contributions entitle you to deductions if you file an itemized tax return. According to H&R Block, you can deduct mileage or vehicle expenses used for charitable work, but not the value of your time. The IRS limits the amount most people can deduct for charitable contributions to 50 percent of the individual's adjusted gross income. If you receive goods or services in exchange for your contribution, you must deduct the fair market value of the goods or services from the amount of your contribution for tax purposes.

    Cash Donations

    • According to the IRS, contributions made to a community trust, chest, fund, corporation or foundation are deductible if used for one of six acceptable categories: religious, scientific, educational, literary or charitable purposes, or to aid in the prevention of cruelty to children or animals. Donations made to churches and other houses of worship fall into this category. Contributions made to war veterans' organizations, domestic fraternal societies who use the money for one of the six acceptable purposes, the United States or any state or U.S. possession, and some non-profit cemetery companies may be deducted as well. H&R Block advises you must have a bank statement or a receipt for any cash donations you wish to claim.

    Property Donations

    • Evaluate charitable contributions of property based on the fair market value of the items. Clothing and household items such as furniture, electronics and appliances must be in good used condition to qualify for deduction. Donations of vehicles worth more than $500 may be deducted based on the lesser of the vehicle's fair market value or the gross proceeds of the vehicle's sale. Specific rules in place for land donations are affected by ownership, rights and debt attached to the property. Consult a tax advisor for detailed help. According to H&R Block, if your charitable deductions for donated property total more than $500, you will need a special tax form.

    Foreign Charities

    • Some charitable contributions to other countries that have income tax treaties with the United States may be deducted. Deductions to Canadian, Mexican and Israeli charities are allowed if the charities meet specific principles outlined by the IRS and if the contributions come from income earned in Canada, Mexico or Israel, respectively.

Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.