GIVING TO CHARITY

The Pension Protection Act contained a number of changes regarding giving to charity.

Clothing and household items

The new rules for clothing and household items states that to be deductible, if given after August 17, 2006, these items must be in good used condition or better. If a return is audited, the auditors have the discretion of disallowing any and all deductions if there is no indication of condition. The donation of any single item, which value exceeds $ 500, regardless of its condition, may be claimed if a qualified appraisal is included with the return.

Household items include furniture, furnishings, electronics, appliances, and linens.

TAKE PHOTOS OF THESE ITEMS

Monetary Donations

To deduct any charitable donation of money, you must have a bank record or written statement from the charity showing their name, the date and amount. Credit card statements should show the name of the charity.

For payroll deductions, keep your pay stub, W2 or some document from your employer showing the total amount withheld along with the pledge card showing the name of the charity.

Previous laws allowed the use of personal bank registers, diaries or notes made at the time. These are no longer sufficient.

THESE PROVISIONS WILL APPLY TO CONTRIBUTIONS
MADE BEGINNING IN 2007.

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