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Year-end charity giving.

The IRS offers the Ibflowing additional reminders to help taxpayers plan their holiday and year-end gifts to charity:

* Qualified charities. Check that the charity is eligible. Only donations to eligible organizations are tax-deductible. "Select Check," a searchable online tool available on lists most organizations that are eligible to receive deductible contributions. In addition, churches, synagogues, temples; mosques and government agencies are eligible to receive deductible donations. That is true even if they are not listed in the tool's database.

* Year-end gifts. Contributions are deductible in the year made. Thus, donations charged to a credit card belbre the end of 2014 count for 2014. even if the credit card bill isn't paid until 2015. Also, checks count for 2014 as long as they are mailed in 2014.

* Itemize deductions. For individuals, only taxpayers who itemize their deductions on Form 1111-0 Schedule A can claim deductions 14 charitable contributions. This deduction is not available to individuals who choose the standard deduction. This includes anyone who files a short form Form 1040A or 1040EZ). A taxpayer %Yin have a tax savings only if the total itemized deductions , mortgage interest, charitable contributions. state and local taxes. etc.) exceed the standard deduction. Ilse the 2014 Form 1040 Schedule A to determine whether itemizing is better than claiming the standard deduction.

* Record donations. For all donations of proiwriy including clothing and household items, get from the charity, if* possible, a receipt that includes the name of the charity, date of the contribution and a reasonably-detailed description of the donated pmperts. II a donation is lea at a charity's unattended drop site, keep a written record of the donation that includes this information, as well as the lair market value of' the property at the time of the donation and die method used to determine that value. Additional rules apply for a contribution of $250 or more.

* Special rules. The deduction for a car, boat or airplane donated to charity is usually limited to the gross proceeds from its sale. This rule applies if the claimed value is more than $500. Form l 098-C: or a similar statement, must be provided to the donor by the organization and attached to the donor's tax return. Learn more at

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Title Annotation:IRS news
Publication:California CPA
Date:Jan 1, 2015
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