Do Your Year-End Donations Right for Maximum Tax Savings
By Taxation Solutions, Inc. on 2016-12-01
As 2016 is rolling to a close, you might be thinking about making some year-end charitable donations. That's a great way to give back at the holidays and to increase the deductions you'll be able to make on your tax return.
But make sure you're following the IRS's guidelines for making eligible contributions if you plan to deduct those charitable gifts on your taxes!
- Confirm that the organization you are donating to meets the IRS's requirements for deductible contributions. Here's a convenient tool available on the IRS website that can help.
- Make sure you get a receipt for the donation. Documentation of your charitable contribution should include the amount given, name of the organization you donated to, and the date.
- For non-cash contributions with a value over $5,000, you'll need to obtain a qualified appraisal documenting the value of the item(s).
- If you receive a "thank you" gift or personal benefit from the donation, remember to only include the value of the contribution over and above the thank you or personal benefit in the amount deducted on your taxes.
- Ensure that all charitable contributions are made before December 31 if you plan to include them on your 2016 taxes.
Have questions about tax-deductible year-end contributions? Just ask the pros at Taxation Solutions, Inc. We're here to help!