The IRS has provided tips and reminders to individuals and businesses making year-end gifts to charity. They highlighted the rules for claiming deductions for charitable contributions of clothing and household items along with the guidelines for monetary donations.
Clothing and Household Items
The IRS reminded taxpayers that donors must get a written acknowledgment from the charity for all gifts of $250 or more. The acknowledgment must include, among other things, a description of the item(s) contributed. The Service also noted that clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible. Household items include furniture, furnishings, electronics, appliances and linens.
For donations of cash, the IRS reminded taxpayers that they must have a bank record or a written statement from the charity 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 noted. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer reflecting the total amount withheld for charity.
Contact the experts at Sobul, Primes & Schenkel office, located at 12100 Wilshire Blvd., Suite 1150, Los Angeles, CA 90025 to answer your year-end charitable gift questions. We can be reached by phone at (310) 826-2060 or email.