Year-End Gifts to Charity: IRS Tips

Making year-end gifts to charity carries several important tax law provisions that have taken effect in recent years.

Some of the changes taxpayers should keep in mind include:

Rules for Charitable Contributions of Clothing and Household Items

Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible.

Guidelines for Monetary Donations

A taxpayer must have a bank record or a written statement from the charity in order to deduct any donation of money, regardless of amount. The record must show the name of the charity and the date and amount of the contribution.

The IRS offers the following additional reminders to help taxpayers plan their holiday and year-end gifts to charity:

• qualified charities
• year-end gifts
• itemize deductions
• record donations
• special rules

If the amount of a taxpayer’s deduction for all non-cash contributions is over $500, a properly completed Form 8283 must be submitted with the tax return.

For expanded information on these topics and to read the entire article, please visit www.irs.gov.