Times are tough out there right now and I know that a lot of
IBOs are giving to charitable organizations to help people.
Here are some tips to help you make sure your tax deductions
are good:
• 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.
