Charitable Contributions

The year is quickly coming to a close and it is time to start thinking about tax deductions. Here are a few tips regarding charitable contributions:

Cash charitable contributions require a receipt. If you make a cash contribution, you cannot take the deduction without a receipt from the charitable organization. If you pay by check, debit or credit card, your bank or credit card statement is your receipt unless the total of your annual contributions (per charity) is $250 or more. If the total is over $249, you also need a receipt from the charity. Because of recent tax court cases, it is a good idea to obtain a receipt for all charitable donations.

Non-cash charitable deductions have become more restrictive in recent years. No deduction is allowed for a charitable contribution of clothing or household items unless the items are new or in "good used condition." Food, paintings, antiques, art, jewelry, and collections are excluded from the "good used condition" rule.

You need pictures or a detailed description of the items donated. The list should document the item's condition (new or good), the date you acquired it, the cost of the item if you know it, and the fair market value on the date of donation. You also need a written receipt from the charity to document your donation.

Donation of a vehicle requires a written receipt from the charity, which must be obtained within 30 days of the charity's sale of your vehicle. The charity's written receipt must include your name and tax identification number as well as the vehicle identification number. Your deduction is limited to the gross proceeds from the sale of the vehicle.

Charitable travel is deductible at 14 cents per mile, but you cannot deduct charitable travel unless there is "no significant element of personal pleasure." If you travel for a charity (chorus, symphony, fraternal organization, etc.), you cannot deduct your expenses unless at least most of that trip was directly related to the charitable work.