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Posted by Felecia Dixson, EA, ATA

Did You Know Your Charitable Donations Can Be Tax-Deductible?

Did You Know Your Charitable Donations Can Be Tax-Deductible?

ASU-Account Services Unlimited LLC in Rolla, MO reveals that most people have not realized the extent of relief giving for charity could bring to their taxable incomes. In fact, most people think that giving for charity is a thing of the rich. Well, you may argue about it all day, but the fact is, it is a noble idea (a tax-deductible expense) especially when you looking to minimize the tax you remit.

Although due diligence is needed for a charitable contribution to qualify for a tax deduction, this is a great idea to undertake. It brings you a great sense of purpose while at the same time, saves your finances.

It is important to note that not all charitable undertakings will qualify for tax deduction. For you to qualify, you must choose well and be diligent to observe a few things even as you warm up hearts through giving. Here are a few items sure to attract tax deductions as compiled by ASU-Account Services Unlimited LLC in Rolla, Mo-the tax professionals.

Five Items to Donate That Attracts Charitable Tax Deduction

Most people often think of giving out checks and cash as charity donations to enjoy some tax relief. The truth is, not only cash attracts deductions when given for charity. Here's a list of items you may not have known to attract deductions on your income earnings.

Appreciated securities. You read that right. Stop holding any longer to excess stock that you could give out for charity. Seek help from a tax professional or a financial advisor. ASU-Account Services Unlimited  LLC in Rolla, Mo could also help in this case.

  • A  car. This is probably one of the generous undertakings that you will do in your entire life (wink). The charity organization will sell the car for cash. In some cases, the charity will tow the car on your behalf, eliminating the need you to get involved in towing logistics. Your deductions depend on how much the car is sold for by the charity.
  • Cash. Give as much of that green paper to charity as you can. However, should you amounts less than $250 at one time, it will force you to obtain banks records or canceled check for IRS to verify your contribution. Bank records are also needed even for amounts given at one time of over $250, alongside an acknowledgment letter from the charity confirming the date and amounts given. You'll as well need to fill out form 8283 and pin it together with your tax return.
  • Furniture. Not sure if you ever thought of this but it you should consider giving your sofa set the next time you are doing an upgrade. A complete bedroom set, for example, could fetch you up to $1000 tax write-off. So next time you are changing stuff around, be it your bedroom set, dining room set or computers and refrigerators, consider giving the old for charity.
  • Miscellaneous items. Items like old but fine shoes, floor lamp, fur coats could go a long way in increasing your tax write-offs. High-end Fur coats could fetch up to $400 while men’s suits and overcoats may go up to $60.

To enjoy the benefits of these charitable deductions, you will need to make sure you make the right decisions when giving to charity. Not all charitable contributions will attract tax deductions. ASU-Account Services Unlimited LLC in Rolla, MO advises that you check your charitable contributions against the following:

  1. Your Charitable Donation Qualifications for a Tax-deductible       By Meeting Certain Conditions.

The charitable contribution you are going to make must be in money or property form to qualify for a tax deduction. Promises and pledges do not make the cut until fulfilled or paid respectively. Volunteering time for a charity will also not attract a tax deduction. Anything received in return for your charitable contributions should be deducted in value from what you gave to charity. However, this service will only be possible if you can itemize your deductions.

  1. You must only contribute to a qualified tax-exempt       organization to get tax deductions on your donations.

ASU-Account Services Unlimited LLC in Rolla, Mo has established that some private charity organization does not meet this requirement. If you are going to give expecting to get some tax relief, then you’ve only one choice. Choose a tax-exempt charity organization and meets all the IRS’s set conditions of receiving donations that are tax-deductible. Fortunately for you, most public charities meet these conditions. You may request for IRS letter of approval or check with IRS on their website, IRS Publication 78.

  1. Your Record Keeping Must Meet Set Requirements.

You really need to take charge of your donations and keep records of even the smallest of amounts that you give in Church. The Pensions Protection Act demands that you keep every little detail of your donations; the amount, the charity organization's name, the date, etc. In the absence of these records, your donations may be misunderstood for business and thus miss out on charitable tax deductions.

Charity donations are a worthy undertaking especially when done with the purest of intentions. Even more interesting is if these generous donations somewhat pay us back through tax write-offs. Having a tax professional or a tax preparer working hand in hand with you will go a long way in making your job easy and ensuring you double benefit from these donations. ASU-Account Services Unlimited LLC  in Rolla, MO are not only honest and efficient in service delivery but are also diligent and possess a premium history of excellence. Get in touch today for professional guidance and be sure to find a tax professional that cares for your interest and not after your hard earned money! We are located in Rolla,  MO

Felecia Dixson, EA, ATA
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