|Copyright:||Copyright Business Wire 2010|
|Source:||Business Wire, Inc.|
Make Monetary Charitable Contributions and Item Donations: Generally, for individuals, contributions to tax-exempt charitable organizations are limited to 50 percent of the taxpayer’s adjusted gross income for the tax year. Taxpayers who have had charitable contributions deducted from their paychecks are required to hold onto their pledge cards from the charity, pay stubs, and their FormW-2 or other employer information that states the total amount of donation.
Those unused items cluttering closets can be donated to a qualified charity or non-profit organization and deducted as charitable contributions. However, these items must be in good, used condition or better. Document your donations by saving receipts, cancelled checks and any letters or correspondence from the charity.
“Many people short change themselves by undervaluing their item contributions,” said
When declaring the value of donated clothing or items for tax purposes, determine the fair market value. This can be the price the item might sell for at a garage sale or thrift store.
Check that your donations are made to a charity or non-profit organization that the
Make Donations of Stocks or Make a Charity Your Beneficiary: Besides items, stocks may be a donation to consider with tax advantages. If the stock’s value has appreciated, and the taxpayer has held it for over a year, the taxpayer may claim the deduction and not owe taxes on the capital gain realized. When a charity is named as a beneficiary of an insurance policy, the taxpayer may be able to deduct the cash value and premiums of the policy. Taxpayers can also name charities and non-profits in their wills to receive a dollar bequest or percentage of the estate.
Make Donations of Property: Property and securities can be tax deductible contributions when the taxpayer establishes a charitable remainder trust or charitable lead trust. A charitable remainder trust filters the income generated to charity after the donor’s death, and the charitable lead trust generates the income for the charity during the donor’s lifetime.
Martha O’Gorman, 800-790-3863 ext. 8022
Chief Marketing Officer