Many people take significant pride in the donations they make to charities that are near and dear to their hearts. Of course, not only does donating to charity allow an individual to help out a cause they are passionate about, they will also usually be able to deduct these contributions when tax season rolls around. With taxes due in just over a month, now is the time to make sure all documents are collected, including those related to charitable donations. If you contributed money to charity last year and wish to deduct the full amount on your tax return, it is essential that you have all of the paperwork and records associated with the donation.
If you have donated money to a charity, make sure you have a detailed record of the amount contributed, when the donation was made, and the name of the organization. The organization must be legitimate and qualified. If you donated more than $250, you must get a written notice from the charity acknowledging that they received these funds.
If you donated physical property to a charity, the process is a little different. Usually, you will be able to deduct the amount that you paid for the item. However, if the value appreciated since the donation occurred, you may deduct fair market value.
If you received any benefits because of the donation, you will only be able to deduct the difference between the amount that you contributed and the amount you benefited. If you have questions about charitable donations, contact Werdann DeVito LLC today.