A recent study shows that more Americans are loosening their purse strings and making charitable contributions to qualified organizations. However, tax professionals are urging individuals who plan to claim their donations to get the details in writing.
A recent Wall Street Journal post highlighted the case of a taxpayer who made a six-figure donation to a university, only to find the amount could not be deducted because there was no valid letter confirming the details. According to Internal Revenue Service guidelines, individuals who make a donation amounting to $250 or more must have a valid document from the charity organization that confirms the details, the Journal reports.
"If you don't have the correct paperwork, there's no way to fix the problem," Deloitte Tax director Laura Peebles
told the Journal.
Documentation provided by the organization should include the amount of the donation, and a confirmation that no goods or services were received in exchange for the gift. If goods or services were received, those details must be documented as well. Individuals who are unsure of the rules relating to charitable contributions should consult their tax preparer
prior to making a large donation._____________________________________________________________________________________________________________________
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.