Tax Tips

make sure your tax deductions are good:

• Do a background check at IRS.gov or CharityNavigator.org to be sure the organization you are donating to has

501C3 tax-exempt status.

• Be sure to keep a record of each item you give with an estimate of its Fair Market Value. Fair Market Value is

normally what you would pay for the item at a thrift store.

IRS is clamping down on overvalued non-cash contributions. Publication 561 at IRS.gov can help you with these values.

• Always get a receipt from the charity you gave to. This receipt should include the name of the charity, date of

the donation, and a list of items given.

• If you donate something worth $5,000 or more, you must get an appraisal before you can claim it.

• If you make non-cash donations totaling more than $500, you must complete IRS form 8283 and attach it to your

tax return. This form can also be found at IRS.gov.

Joe

Learn more about Joe DePetris, Jr., and IBO tax return preparation and tax issues at IBO Bookkeeping 101.

Find more Tax Tips for IBOs from Joe DePetris, Jr., CPA.

This article is provided as an educational resource for your guidance, and is strictly informational. It does not constitute legal, accounting, or other professional counsel. Nothing included herein implies a recommendation by the author, the IBOA International, or Amway Global, of any course or method of regulatory compliance. Readers and users who intend to take, or refrain from taking, any action based on information contained herein should first consult with their qualified tax advisor, preferably a C.P.A., or appropriate regulatory authorities.