Monday, March 14, 2016

Charitable Gift Donations


T’is the season for donating gifts to your favorite charities! If you plan to deduct any of your charitable donations on your 2015 tax return, hopefully you kept good records throughout the year and any receipts (whenever possible) from charitable organizations. Below are just a few basic reminders about charitable gifts:

No QCDs. The Qualified Charitable Distribution option for IRA owners was not extended through 2015. Hopefully we will see this marvelous option make a permanent comeback!

Did you donate to a qualified charity? The charity must be an eligible charity for your gift to be tax-deductible. Churches, temples, synagogues, mosques and government agencies are always eligible.

Gifts are deductible for the year in which it was made. As long as your check was mailed in 2015, it will count as a 2015 donation. Many people also use credit cards to make a charitable donation. As long as it was charged in 2015, it will count for 2015 (even if you still have an outstanding credit card balance for the donated amount in 2016).

Keep Good Records. Keep track of and save detailed receipts for all donations of property, including clothes, appliances or other tangible items. If a donation is left at a charity’s unattended drop site, you must keep a written record including the name, date, fair market value (FMV) and method of FMV calculation used.

Did you donate property valued in excess of $250? Additional rules apply for a contribution of $250 or more.

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