irs 300FRANKFORT, Ky. (12/27/12) – Individuals and businesses making contributions to charity should keep in mind some key tax provisions that have taken effect in recent years, especially those affecting donations of clothing and household items and monetary donations.
 
Rules for Clothing and Household Items
To be deductible, clothing and household items donated to charity generally must be in good used condition or better. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances and linens.
 
Guidelines for Monetary Donations
To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank or credit union statements, and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date, and the transaction posting date.
 
Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.
 
These requirements for the deduction of monetary donations do not change the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements.
 
Reminders
To help taxpayers plan their holiday-season and year-end giving, the IRS offers the following additional reminders:
 
• Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2012 count for 2012. This is true even if the credit card bill isn’t paid until 2013. Also, checks count for 2012 as long as they are mailed in 2012.
• Check that the organization is qualified. Only donations to qualified organizations are tax-deductible. Exempt Organization Select Check, a searchable online database available on IRS.gov, lists most organizations that are qualified to receive deductible contributions. In addition, churches, synagogues, temples, mosques and government agencies are eligible to receive deductible donations, even if they are not listed in the database.
 
Paul McRee
SurfKY News
Information provided by IRS.gov

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Henderson County Traffic Advisory

HENDERSON, Ky. (9/1/15) — A contractor for the Kentucky Transportation Cabinet plans base repairs to be followed by… Read More

Hopkins District Court Fines Handed Down

HOPKINS COUNTY, Ky. (9/1/15) — The following fines were handed down recently in Hopkins District Court: Penny F. Babbs,… Read More
1 DOW 16,237.54
+179.19 (1.12%)    
2 S&P 1,936.15
+22.30 (1.17%)    
3 NASDAQ 4,705.41
+69.31 (1.49%)    

Most Read This Week

August 31, 2015 6394

Man Convicted of Hopkins Countian's Death Granted…

by Doreen Dennis, SurfKY News
August 27, 2015 4904

All is Well after MNHHS Lockdown

by Doreen Dennis, SurfKY News
August 30, 2015 3822

UPDATED: 'He Fought the Law ... but, the Law Won'

by Doreen Dennis, SurfKY News
August 27, 2015 2757

Kentucky Career Center Blood Drive Aug. 31

by SurfKY News
August 30, 2015 2344

Happenings, Meetings Listed for Following Week

by Tammy Holloway, SurfKY News

Most Read This Month

August 06, 2015 18558

Muhlenberg Woman Reportedly Suffers Violent…

by SurfKY News
August 24, 2015 11835

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News

Stories Trending Now

September 01, 2015 1513

Small Business Tax Credit Workshop

by SurfKY News
September 01, 2015 1306

Traffic Stop Leads to Meth Charge for Driver

by SurfKY News
September 01, 2015 1243

Central City Gospelfest Planned for September 2

by SurfKY News
September 01, 2015 1020

Hopkins District Court Fines Handed Down

by SurfKY News
September 01, 2015 1009

Madisonville Police Arrest Reports Released -…

by SurfKY News
September 01, 2015 968

Governor Lauds Launch of Kentucky's New I-Way

by SurfKY News
September 01, 2015 738

Annual 'Swingin' for Sadie' Tourneys Set for…

by SurfKY News
September 01, 2015 724

Child Injured in Wreck, Father Charged with DUI

by SurfKY News
September 01, 2015 592

Pet of the Day - Morty

by SurfKY News
September 01, 2015 544

Color Run Raises Funds for Cancer Research

by Tammy Holloway, SurfKY News