Charitable Giving Tips From the IRS

The IRS has shared some reminders for deducting year-end charitable donations by both individuals and businesses. Here are some of the key points on recent tax treatment changes that the IRS wants taxpayers to be aware of this gifting season:

• Donations of clothing and household items may be used but be need to be in at least good condition to be deducted, unless the deduction for an item is over $500 and accompanied by a qualified appraisal.
• Taxpayers need to get the charity to give them a written acknowledgment and description of the items or amount for donations if the total donation is at or over $250.
• A bank record is needed for all monetary donations. A communication from the charity in writing that includes the charity’s name, the date, and how much was donated can be used instead of a bank record.
• If a donation is through a payroll deduction a pay stub should be retained by the taxpayer.

See Theodore H. Waggner,  IRS 2014-110: Tips for Year-end Charitable Contributions, Wealth Strategies Journal, Dec. 1, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.