Don’t forget to file your returns and pay any tax due today!
We also have another quick reminder. Spring often brings about spring cleaning and for many that means getting rid of household items and clothing. Be sure to maintain the proper documentation so you can claim a charitable contribution.
When you make the donations, the charity should give you a receipt with their name and the date of the donation along with a general description of what was donated. You should keep this receipt for your files. Also, keep a list of the donated items and their fair market (or thrift shop) value.
These non-cash charitable donations are deductible if you itemize your deductions on your income tax return. If your non-cash charitable donations for the year total over $500, you will need to fill out Form 8283 and attach it to your return. On this form, list the name and address of the charitable organization, the date of the donation, a general description of what was given, and the fair market value of the items donated.
Fair market value of your donations can often be determined by comparable sales (eBay, Craigslist, etc.) or the cost to purchase a similar item at a thrift store. There are also other online resources available such as the guidelines that can be found on both the Salvation Army and the Goodwill Industries websites.
We will be taking a break and will return with a new edition of Tax Tip Tuesday on May 8th.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.