People who give to charity do so freely, without a tinge of "what's in it for me". But even the most earnest philanthropists will agree that a tax break can make the good feeling you get from giving, even better.
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.
Like all things in life, charities can be good or bad. Most are worthy, legitimate organizations that rely on the donations of generous individuals. On the other hand, some "charities" are no more than crooks who are happy to take your cash and run. That's why it's so important to do your homework before making your donation. Ask for the group's charitable organization number. It's also a good idea to pick up a copy of the IRS Publication 78. This guide is available online and at most public libraries and provides a complete list of all charitable organizations that are recognized by tax agencies.
If you're looking for a tax break for donations made to an individual person, a politician or a political organization, you're out of luck. No tax benefits are available for these types of gifts. Additionally, you cannot claim a deduction for the time that you spend raising funds through activities such as raffles, casino games or bingo.
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.
Donated vehicles can also net you a sizeable tax deduction. Automobiles, airplanes and boats can all be donated to charity in exchange for a tax break. The amount of the deduction will be based on the vehicle's resale value at the time of your donation, so be sure to have a proper appraisal before you donate. One important point to remember is that if the value of the vehicle exceeds $500 and the charity in turn sells the vehicle, the amount of your tax credit will be limited to the gross proceeds of the sale.
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.superfeature.com
สมัครสมาชิก:
ส่งความคิดเห็น (Atom)
ไม่มีความคิดเห็น:
แสดงความคิดเห็น