| means business when it comes to properly | | | | What if your donation is of the non-cash variety? Well, |
| documenting donations given to charity. Because of a | | | | if you claim a deduction and it's less than $250 you |
| change in the tax law you must now obtain written | | | | must get a receipt from the charity. Again, the receipt |
| documentation for ALL cash donations. Prior to the tax | | | | must show who, when and the amount you donated. If |
| law change if your cash donation was less than $250, | | | | your contribution is over $250 but less than $500 don't |
| you weren't required to have it substantiated with a | | | | walk away without a contemporaneous written |
| receipt from the charity. But now you do. This means | | | | acknowledgment from the charity. In other words, GET |
| all tithes to your church too, that's if of course, you're | | | | A DETAILED RECEIPT!! For taxpayers who can give |
| going to claim it as an itemized deduction. | | | | more than $500 but not more than $5000 you must |
| Here's a suggestion to ensure all of your t's are | | | | follow the same rules, but you must file Form 8283, |
| crossed and your i's are dotted in case of an audit. | | | | Noncash Charitable Contributions. |
| Always maintain good records and do it now instead | | | | And for you blessed taxpayers who give more than |
| of procrastinating till the tax deadline is staring you in | | | | $5000 the same rule applies but you must obtain a |
| the face. When you give to your local charity make | | | | qualified appraisal. Contributions larger than $500,000 |
| sure you get a receipt. It must show the charity's | | | | require you to attach a copy of an appraisal to your |
| name, the date you contributed and the amount you | | | | return. |
| donated. | | | | If you'll follow the practice of obtaining detailed receipts |
| Here's something else you might not be aware of, if | | | | and keep good records every time you give to a |
| you use a credit card to make your charitable donation | | | | charity, you'll be able to calmly stand up to any inquiry |
| in 2008, you can claim a deduction even if you don't | | | | by the Internal Revenue Service. |
| pay it off until 2009. Sweet huh? | | | | |