lima branch
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Tel: 419.222.2001
Fax: 419.222.1570
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Tel: 419.369.9001
Fax: 419.369.1570

Charity


This section explores some of the special rules that apply to charitable contributions, including deductions, non-cash contributions, car donations, etc. The latest tax law changes that were recently passed are also discussed. Use this information to help you make the most of your contributions.

Deduction Tips for Contributors to Haiti Relief Effort
Tuesday, June 30, 2015

Haiti Contributions Deductible on 2009 Return - Congress has passed a bill (HR 4462) to permit taxpayers contributing to Haitian relief charities to elect to treat contributions made after Jan. 11, 2010, and before Mar. 1, 2010, as if the contributions had been made on Dec. 31, 2009. If the...

Tax Free IRA to Charity Distributions Reinstated
Tuesday, June 30, 2015

The provision that permits taxpayers age 70½ and over to make direct distributions (up to $100,000 per year) from their Traditional or Roth IRA account to a charity is available for tax years 2010 through 2013. The distribution is tax-free, but there is no charitable deduction.  This provision can be...

Special Rules for Car Donations
Tuesday, June 30, 2015

Congress has imposed tough rules that substantially limit the deduction for this charitable donation.

It is common practice for charities to immediately resell the donated vehicles to a wholesaler at substantially reduced prices, generally far less than the FMV one might consider as the listed bluebook FMV of the vehicle....

What is a Charitable Organization?
Tuesday, June 30, 2015

Money or property that you donate to "qualified" charitable organizations can be included in your itemized deductions as a charitable contribution. But what is a "qualified" charity? The IRS provides an on-line search for qualified organizations.

A qualified charitable organization will fall into one of the following categories:

Churches, synagogues,...

Charitable Away-From-Home Travel
Tuesday, June 30, 2015

Charitable deductions are allowed only for travel expenses (meals and lodging included) by volunteers who do charitable work for their organization while away from home on the charity's behalf. Unlike other areas of taxes, meals are not subject to the 50% limitation. Any "significant element of personal pleasure" negates a deduction (i.e.,...

Tax Breaks for Charity Volunteers
Tuesday, June 30, 2015

If you volunteer your time for a charity, you may qualify for some tax breaks. Although no tax deduction is allowed for the value of services performed for a charity, there are deductions permitted for out-of-pocket costs incurred while performing the services. The normal deduction limits and substantiation rules also...

Charitable Contribution Substantiation Rules
Tuesday, June 30, 2015

Cash Contributions - Cash contributions, regardless of the amount, must be substantiated with a bank record or written communication from the donee showing the name of the charitable organization, date and amount of the contribution.

The recordkeeping requirements may not be satisfied by maintaining other written records. This means that...

Deduction Limits
Tuesday, June 30, 2015

Charitable deductions are limited by income depending upon the type of contribution. Contributions in excess of the deduction limits described (1), (2), and (3) below, may be carried forward for five years. An amount can be carried over even though an individual does not itemize their deductions in the year...

Foreign Charities
Tuesday, June 30, 2015

Generally, no deduction is permitted for contribution to a foreign charity. However, that does not include contributions to U.S. Charities that perform part of their charitable function outside the U.S. An exception to this rule is Mexican, Canadian and Israeli charities.

Canadian Charities - Certain Canadian charitable organizations covered under...

Personal Benefits Not Deductible
Tuesday, June 30, 2015

Givers may deduct contributions of cash or property, but only to the extent they received no personal benefit from the donation. Often, the IRS attributes at least some (if not total) personal benefit to amounts expended for items like dinner tickets, church school tuition, YMCA dues, raffles, etc. To determine...

Property Donations
Tuesday, June 30, 2015

In addition to noncash charitable contributions, taxpayers can make certain donations of property as outlined below.

Gifts of appreciated capital-gain property held for more than 12 months are subject to special rules. This type of property includes stocks and bonds, artwork, jewelry, coins, land, etc. The deduction amount depends on...