Some folks who’re finishing up their tax returns have recently asked about tax deductions for giving to charity. As most of you know, non-cash items are legitimate deductions; however, certain rules must be followed for Uncle Sam to accept your offerings.
• For items less than $250, you’ll need a receipt from the acknowledging organization. Check “Ways to Give” at www.salvationarmyusa.org to figure the fair market cost of your items.
• The charity’s letterhead must accompany your tax returns with a description of the donated items that range from $250 to $500 and proof that you didn’t receive any payment.
• If your donations vary from $501 to $5,000, you must attach proof about when each article was inherited or purchased and an estimate of its original value. Obviously, a copy of a receipt is best.
• Experts’ appraisals, and certified folks at that, are necessary to claim values over $5,000.