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As year-end approaches, the IRS offers several reminders on the rules applicable to individuals and businesses making charitable contributions. In order to deduct a monetary donation of any amount, the taxpayer must have written communication from the charity, a bank statement, or a credit card statement. A taxpayer must receive written acknowledgment from the charity for donations of $250 or more.
Additional reminders include:
(1) contributions are deductible in the year made, including donations charged to a credit card before year end,
(2) only contributions to eligible charities are deductible (the IRS has a searchable database on www.irs.gov ),
(3) individuals must itemize deductions to claim a charitable contribution deduction,
(4) deductions for cars, boats, or planes are generally limited to the gross proceeds from their sale, and