You must be able to itemize your tax return to take charity deductions. If you can’t itemize this year you can bunch your deductions and make your contributions next year. There are different types of donations.
Cash Donations
If you donate cash and don’t receive a receipt you don’t have a deduction. You can no longer deduct cash donations. You must have a cancelled check , bank record or receipt from the charity regardless of the amount you donate. If the donation is more than $250 a receipt is always REQUIRED.
Non Cash Donations
These can be shoes, clothes, books, furniture and appliances you donate. Unless in good condition the items will not qualify for a deduction. This means you need to add a notation labeling the condition of the donated items. You will also need a receipt from the charity along with your inventory. It is also a good idea to take pictures.
Non Cash Donations over $500 but not over $5000
Your itemized inventory must also include when and how you came to possess the property. Examples are: purchase, gift, inheritance or exchange. Your records must also include original cost or other basis.
Near Cash Donation
These expenses occur when you make purchases for the benefit of the charity. Example buying supplies for Sunday school, canned goods etc. Besides having a receipt you must also have a receipt acknowledging the donation to the charity.
Stock Donations
Do you have stock that has appreciated in value? Give the shares to the charity. You wont have pay taxes on the capital gains and you will receive a charity deduction for the fair market value of the shares on the day of the gift.
Source: The Tax Network Photo:Pexels
