It's time to start gathering your 2011 tax information.
To take a deduction for charitable contributions, one must meet the substantiation and reporting requirements. Using "same as last year" or "the normal amount" is not an option.
Below is a short summary of the requirements.
Contributions of less than $250
- Cash: A bank record verifying the donee, the date and amount (i.e. a cancelled check or bank statement), a receipt from the donee verifying the date and amount, or payroll deduction record and pledge.
- Non Cash: A receipt from the donee, the date of the contribution, description of the property and location of the property. One must also maintain documentation proving the value of the property and how it was determined, the date acquired and basis of the property, the percent of the property given, and any terms or conditions connected to the contribution.
Contributions of $250, but less than $500
- Cash: Same as above plus a written acknowledgement from the donee indicating 1) the date and amount of the contribution, 2) whether or not any goods and services were provided by the donee as a result of the contribution, other than an intangible religious benefit, and if so, the value of such benefits.
- Non Cash: Same as cash above plus a description of the property and its location.
Contributions of more than $500 to $5,000
- Cash: Same as the $250 but less than $500 category.
- Non Cash: Same as the $250 but less than $500 category plus Form 8283 needs to be filed and include how and when the property was acquired and the basis of the property.
Contributions of more than $5,000
- Cash: Same as the previous category.
- Non Cash: Same as above plus one must obtain a qualified appraisal, complete page two of Form 8283, and the appraiser and donee must sign Form 8283.
The instructions to Schedule A and Form 8283 and publications 17, 526,561, and 4303 include guidelines and explanations of the rules. These resources provide helpful information such as special exceptions for reporting contributions of marketable securities and small non-traded securities, vehicle donation, and understanding when “similar items” donated during the year to various charities get combined in determining which category above applies. These resources can be found on the IRS website. www.irs.gov
New Years and Great Birthday Party
Had a great New Years in Florida. My wife Jan and I had a great time boating on "Miss You" our deck boat. Yes, it does have a Rolling Stones tongue on the back. I love being on the water. The bars are fun too.
Just celebrated Cami's sixth birthday at the Boat House Condo party room and indoor pool. What a great time with my family. Cami was so happy and beautiful. I love her.
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