Tax Relief - More Donation Proof
In recent years the IRS have become tougher on proof of donation documentation; in previous years all you really had to get was a receipt or some other from of acknowledgment from the charity on donations of $250 or more.
This offered some Tax relief.
Nowadays though for a `monetary gift' to be a Tax relief deduction, the taxpayer must be able to produce a bank record or other form of written communication indicating the donation, that details the name of the charity as well as the date and amount of the `gift'.
A cancelled check will suffice, or if you charge a charitable contribution to a credit card, the statement will provide sufficient proof.
Most charities do provide the correct kind of receipt required by the IRS, regardless of the amount of the gift or donation.
You do not need to provide receipts for smaller donations, but you should keep them in case the IRS questions your Tax relief deductions as without them, they might automatically disallow the deductions.
In terms of Tax relief for donations or gifts, there is also the matter of the `good-or-better requirement'.
Under the auspices of this law the US taxpayer may think that he can dump worthless items in a charitable institutions donation bin and then claim a tax deduction, this is not so.
Under this particular law the IRS will determine if the donations to a charity, whether they be clothing, household items, toys etc, are of any value and they will decide if they meet the standard, if the IRS deems that these non-cash donations do not meet the standard they will not allow the deduction.
This offered some Tax relief.
Nowadays though for a `monetary gift' to be a Tax relief deduction, the taxpayer must be able to produce a bank record or other form of written communication indicating the donation, that details the name of the charity as well as the date and amount of the `gift'.
A cancelled check will suffice, or if you charge a charitable contribution to a credit card, the statement will provide sufficient proof.
Most charities do provide the correct kind of receipt required by the IRS, regardless of the amount of the gift or donation.
You do not need to provide receipts for smaller donations, but you should keep them in case the IRS questions your Tax relief deductions as without them, they might automatically disallow the deductions.
In terms of Tax relief for donations or gifts, there is also the matter of the `good-or-better requirement'.
Under the auspices of this law the US taxpayer may think that he can dump worthless items in a charitable institutions donation bin and then claim a tax deduction, this is not so.
Under this particular law the IRS will determine if the donations to a charity, whether they be clothing, household items, toys etc, are of any value and they will decide if they meet the standard, if the IRS deems that these non-cash donations do not meet the standard they will not allow the deduction.