IRS: Taxpayers Must Have Record of Donations to Charity – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on December 11, 2014

In a news release published on November 25, the Internal Revenue Service (IRS) stated that taxpayers wishing to deduct a donation to charity from their tax bill must have a bank record or written statement from the charity, regardless of the amount donated. The news release served as a reminder to taxpayers regarding provisions which have taken effect in recent years.

In its statement, the IRS added that taxpayers must also get written acknowledgement from the charity for all gifts valued at more than $250. This acknowledgement must include, among other things, a descriptions of the items donated.

Generally, clothing and other household items that are donated to charity must be in good condition in order to be tax deductible. However, the IRS said that if a taxpayer wishes to claim a deduction of more than $500, this standard does not have to be met provided a qualified appraisal of the items is included with the tax return.

Furthermore, the IRS stated that contributions are deductible for the year in which they are made. For donations charged to a credit card, taxpayers may deduct for the year in which the charge was made as opposed to when the credit card bill is paid for. That means that donations made in 2014 can be deducted from tax year 2014, even if the bill isn’t paid until 2015. The same is true for checks, as long as it is mailed in 2014.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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