Revenooer Rants: Time running out on donation opportunities | SierraSun.com
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Revenooer Rants: Time running out on donation opportunities

Jeff Quinn
Jeff Quinn

As the clock ticks down, you had better get on the ball if you still want to make a charitable contribution or two, qualifying for a deduction on your 2013 income tax return.

And if you do, don’t forget:

• If you’re an IRA owner aged 70-1/2 or more, Uncle Sam still permits you to transfer tax-free up to $100,000 per year to an eligible charitable organization. And because such a distribution is not includible in your gross income, it will not affect the calculation of various limitations on certain deductions and exemptions. Be careful with your selection of donees — donor-advised funds and “supporting organizations” are not eligible recipients.

• If, like most folks, you’re donating clothing and household items, remember that such items need to be in good used condition or better in order to qualify for deduction.

• Monetary donations typically are the most common form of gifts, but remember that regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. And beyond that, you must obtain a (contemporaneous) acknowledgement from a charity for each deductible donation of $250 or more.

• Contributions are deductible in the year “made,” including a little wrinkle in this area which permits donations charged on a credit card in 2013 to be deductible in 2013 even though the credit card bill is not paid until the new year.

• For all donations of property, including clothing and household items, you should obtain from the charity a receipt that includes the name of the charity, date of contribution, and a reasonably detailed description of the donated property.

• Donations of cars, boats or airplanes to a charity are generally limited to the gross proceeds from sale of the assets. And get a Form 1098-C or similar statement from the charity, which you should also attach to your return when it is filed.

Happy New Year to all!

CONSULT YOUR TAX ADVISER — This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation. Jeff Quinn is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He may be reached at 831-7288 and welcomes comments at jquinn@ashleyquinncpas.com.


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