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When you donate to your favorite charity, make sure to let the tax agency know. Charitable tax deductions are readily and legitimately available to you. Your contributions to charitable organizations can add up to a sizeable deduction when you itemize them on IRS Form 1040, Schedule A. Before you make any donations, be sure to carry out a few checks. Remember that only donations made to organizations that are recognized by tax agencies are eligible for tax deduction. Refer to the IRS Publication 78 for a complete list of all recognized charitable organizations. Check your public library or search online to view this list. Tax benefits are not available on donations made to individuals, political leaders or political organizations. Further, you cannot claim a tax break for time spent raising money for organizations by holding raffles, bingo or any other games of chance. You don't necessarily have to give cash to get a tax break. Deductions may be available for contributions of merchandise, goods or services. The amount of the tax break is based on the market value of the merchandise, goods or services donated. In other words, if your business donates a product valued at $200 to a local charity, you can claim a $200 tax deduction, provided that it is a charitable organization recognized by the tax agency. It's also possible to receive a tax deduction for your donation of company stocks. The value of the stocks is based on the average high and low values on the date of valuation of the gifted stocks. That old car in the driveway is another potential moneymaker. Get an appraisal of the vehicle, and you will be able to claim a tax deduction for the car's market value at the time of your donation. Planes and boats may also be donated to charity for a tax deduction. Keep in mind that if the claimed value of the donated vehicle, boat or airplane exceeds $500, and the charitable organization sells the item, your tax deduction will be limited to the gross sale proceeds. Household and personal items that are donated may also qualify for a tax deduction. The value of the item is based on the amount that the item would cost at a second-hand shop or garage sale. Be sure to get a proper receipt from the charitable organization that states the value of your donation. This is a requirement for any charitable contribution valued at over $250. Be sure to claim your tax deduction in the same year that you make your donation. It doesn't matter if you have a check or credit card statement that proves your donation. If it's from a previous year, you won't be able to claim the donation. These amounts cannot be carried over to a new tax year. It's true that it's better to give than to receive, but it doesn't hurt to get a little back. Keep a list of your charitable donations, and claim them at the end of the tax year. Consider it your just reward. Article Source: http://www.articlewheel.com
Author Angelina Pyrkins is a columnist for a variety of popular Internet sites, on home rental and home garden issues.
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