Revenooer Rants: Time running out on donation opportunities
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 email@example.com.
Support Local Journalism
Support Local Journalism
Readers around Lake Tahoe, Truckee, and beyond make the Sierra Sun's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Your donation will help us continue to cover COVID-19 and our other vital local news.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User