The Internal Revenue Service reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Many taxpayers may already be planning to do so. Giving money or goods to a tax-exempt charity before December 31st, can usually be deducted on that year’s federal income tax return. IRS has tips to find tax-deductible options:
Donating to disaster recovery efforts or a local shelter? Non-cash items also are included like purchasing dog good or goodies or food donations to local shelters. Don't forget about things like Toys-for-Tots or other programs like that. Also, meals donated are also included.
Want to know the special rules to get a tax deduction from donating cars, boats and other property? If they use the vehicle themselves, then it is the current book value of the item. If they sell the donation - then you get to take the amount of the sales price.
Cash or non-cash year-end gifts to charity? What to know for a tax deduction on your IRS return. Cash is the value of the cash given (less any benefit you received). But the real savings that is often missed is getting a receipt for the non-cash gifts to charities. These can add up substantially when considering the deduction is the amount that the charity sells the items for (clothing, household goods, electronics, etc.)
IRA owners over age 70½ - want to know about a different way to give? This is the best way for seniors to save on their taxes - especially if you already give to charities.
Have a Tax Question?