Tax Issues

Are you being audited?  A cancelled check is no longer sufficient in an audit.  The amount must also be listed on a bank statement as paid.  Debit or credit card transactions must be on a statement also.  Save the applicable statements in case of an audit.

Just as before, any donation of $250 or more given at one time must be acknowledged by the recipient organization in writing.

Donating items to Dayton’s Kid Closet, Goodwill, etc.? All items must AT LEAST be in good, used condition. You must get a receipt just like other donations. Document in detail what you give, or better yet, take a picture of the donated items.

For another year, persons 70 ½ and older can make an IRA distribution to non-profit organization donation without being taxed on the donation. It must be a trustee to organization direct transfer. Also, you may not take a deduction on the Schedule A.

For all tax-related issues, see your tax professional!

 

Have you ever wondered how to determine the "value" of donations you make to the Dayton Kid's Closet or some other charitable organization? Depending on your individual situation, you might be eligible to deduct the "value" of donated goods when you file your income taxes. If you're curious about what "value" of that pair of jeans or sweater you are giving away might be, check out these sites on the internet.....

Goodwill Industries  then click on  " valuation guide" link.

There are a number of other websites where you can get guidance. But, please remember to get a receipt whenever you leave donations if you think you might be claiming deductions for your contributions on your tax form.


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