(COLUMBUS)-Making a charitable donation can benefit those you are helping and help you to lower your taxes.
The Ohio Society of CPAs offers these tips for determining if your contributions of money or property are deductible on your 2009 tax return.
Your donation must be made in 2009. To claim a charitable contribution, you must have donated cash or property to an eligible organization during calendar year 2009. You may not claim a pledge or promise of a donation except for any portion of the pledge you actually paid during the year.
The organization must be a qualified, tax-exempt charity. Generally, this means a 501(c)(3) tax-exempt organization, but there are many exceptions. Check with the organization to confirm their official IRS status, including churches and religious organizations.
Donations made to most not-for-profit lobbying groups and political campaigns or political action committees (PACs) are not considered eligible charitable donations.
You must be eligible to itemize deductions. Only taxpayers who itemize deductions on their tax return are eligible to claim charitable contributions.
Keep records of all contributions. You must be able to show proof of any contribution in excess of $250. Acceptable proof includes a canceled check, receipt, or an acknowledgement letter from the charity detailing the date and amount (or value) of your contribution. Donated property should be appraised in advance.
Claiming charitable contributions. Cash, check or credit card donations to qualified charitable organizations are fully deductible up to 50 percent of your adjusted gross income (AGI). You can deduct property donations in full up to 30 percent of your AGI, and capital assets in full up to 20 percent of AGI.
Any donations made during the year in excess of these limits may be carried over to the following tax year, for a maximum of five years.
For clothing and household wares, you can deduct the fair market value of donated items in good or better condition. The IRS recommends keeping an itemized list of donations, noting condition and fair market value.
For specific instructions for claiming these deductions, see IRS Pub 526, Charitable Deductions.
Special rule for Haiti Relief. The IRS has made a special provision for taxpayers who donated to organizations providing relief to Haiti earthquake victims. If you made a gift of cash or property to a qualifying organization between January 12 and February 28, 2010, you can take the deduction either in 2009 or 2010, but not both years.
For more tax tips or to find a CPA for your specific tax needs, visit FinancialFitnessOhio.com or call 888-959-1212.
The Ohio Society of CPAs, established in 1908, represents more than 23,000 CPAs in business, education, government and public accounting. The Ohio Society’s members not only meet statutory and regulatory requirements as CPAs, but also embrace the highest standards of professional and ethical performance. This is achieved through ongoing professional education, comprehensive quality review and compliance with a strict Code of Professional Conduct.
The Ohio Society of CPAs offers these tips for determining if your contributions of money or property are deductible on your 2009 tax return.
Your donation must be made in 2009. To claim a charitable contribution, you must have donated cash or property to an eligible organization during calendar year 2009. You may not claim a pledge or promise of a donation except for any portion of the pledge you actually paid during the year.
The organization must be a qualified, tax-exempt charity. Generally, this means a 501(c)(3) tax-exempt organization, but there are many exceptions. Check with the organization to confirm their official IRS status, including churches and religious organizations.
Donations made to most not-for-profit lobbying groups and political campaigns or political action committees (PACs) are not considered eligible charitable donations.
You must be eligible to itemize deductions. Only taxpayers who itemize deductions on their tax return are eligible to claim charitable contributions.
Keep records of all contributions. You must be able to show proof of any contribution in excess of $250. Acceptable proof includes a canceled check, receipt, or an acknowledgement letter from the charity detailing the date and amount (or value) of your contribution. Donated property should be appraised in advance.
Claiming charitable contributions. Cash, check or credit card donations to qualified charitable organizations are fully deductible up to 50 percent of your adjusted gross income (AGI). You can deduct property donations in full up to 30 percent of your AGI, and capital assets in full up to 20 percent of AGI.
Any donations made during the year in excess of these limits may be carried over to the following tax year, for a maximum of five years.
For clothing and household wares, you can deduct the fair market value of donated items in good or better condition. The IRS recommends keeping an itemized list of donations, noting condition and fair market value.
For specific instructions for claiming these deductions, see IRS Pub 526, Charitable Deductions.
Special rule for Haiti Relief. The IRS has made a special provision for taxpayers who donated to organizations providing relief to Haiti earthquake victims. If you made a gift of cash or property to a qualifying organization between January 12 and February 28, 2010, you can take the deduction either in 2009 or 2010, but not both years.
For more tax tips or to find a CPA for your specific tax needs, visit FinancialFitnessOhio.com or call 888-959-1212.
The Ohio Society of CPAs, established in 1908, represents more than 23,000 CPAs in business, education, government and public accounting. The Ohio Society’s members not only meet statutory and regulatory requirements as CPAs, but also embrace the highest standards of professional and ethical performance. This is achieved through ongoing professional education, comprehensive quality review and compliance with a strict Code of Professional Conduct.