3 Tips for Making Holiday Charitable Donation Deductions
The holiday season is in full effect! Our CPA firm in Central Missouri hopes you enjoyed your Christmas and that you have a Happy New Year! That being said, this time of year can tend to bring out the best in people. You may feel urged to donate money to your favorite charity this time of year or donate your time volunteering somewhere for the less fortunate. Have you ever wondered whether or not you can deduct those donations on your taxes? This Mid-MO CPA firm is here to give you three tips for making holiday charitable donation deductions in this week's blog. If you have any questions about your tax planning, please call the nearest Wilson Toellner CPA office you. We have four locations throughout Mid-Missouri, one office in Sedalia, one office in Marshall, one office in Lake Ozark, and one office in Camdenton. You can also visit our website at www.WTCPA.com for more information on tax planning and you can follow our social media channels listed at the end of this blog for the latest announcements we have.
1. Know how to deduct a donation from your taxes that isn't cash.
According to the IRS, for donations of property instead of cash, a taxpayer can only deduct the fair market value of the donated item. Fair market value is generally the price they would get if they sold the item on the open market. If they donate used clothing and household items, those items generally must be in good condition. Special rules apply to certain types of property donations, such as cars and boats.
2. Know that every donation you make you can't necessarily be deducted.
Not necessarily, according to the IRS, a taxpayer must donate to a qualified charity in order to deduct their contributions.
3. Have all the proper paperwork or electronic proof ready if you are deducting a donation over $250.
According to the IRS, If a taxpayer donates $250 or more in cash or goods, they must have a written receipt from the charity. The statement must show the amount of the donation, a description of any property given and whether the taxpayer received any goods or services in exchange for their gift, and, if so, must provide a description and good faith estimate of the value of those goods or services.
Source: IRS
All of us here at Wilson Toellner CPA hope you found these tips enlightening for making holiday charitable donation deductions. If you have any questions about making tax deductions, please give our CPA firm in Central MO a call today. We'd love to help you however we can. All phone numbers can be found on our website at www.WTCPA.com.
3 Tips for Making Holiday Charitable Donation Deductions
1. Know how to deduct a donation from your taxes that isn't cash.
According to the IRS, for donations of property instead of cash, a taxpayer can only deduct the fair market value of the donated item. Fair market value is generally the price they would get if they sold the item on the open market. If they donate used clothing and household items, those items generally must be in good condition. Special rules apply to certain types of property donations, such as cars and boats.
2. Know that every donation you make you can't necessarily be deducted.
Not necessarily, according to the IRS, a taxpayer must donate to a qualified charity in order to deduct their contributions.
3. Have all the proper paperwork or electronic proof ready if you are deducting a donation over $250.
According to the IRS, If a taxpayer donates $250 or more in cash or goods, they must have a written receipt from the charity. The statement must show the amount of the donation, a description of any property given and whether the taxpayer received any goods or services in exchange for their gift, and, if so, must provide a description and good faith estimate of the value of those goods or services.
Source: IRS
Happy Holidays from Wilson Toellner CPA!
All of us here at Wilson Toellner CPA hope you found these tips enlightening for making holiday charitable donation deductions. If you have any questions about making tax deductions, please give our CPA firm in Central MO a call today. We'd love to help you however we can. All phone numbers can be found on our website at www.WTCPA.com.
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For tax preparation services you can count on, call:
Sedalia -- (660) 827-4990
Marshall -- (660) 886-6815
Camdenton -- (573) 346-6822
Lake Ozark -- (573) 964-5739
Check out our website: www.WTCPA.com
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