Hi,
With Christmas season upcoming we will be making the usual donations. It is my understanding that the $20 I slip into the Salvation Army bucket is no longer deductible because it is cash and there is no receipt. Is that correct?
We also contribute toys. Some are placed in a collection box without a receipt but we do have purchase receipts. These are deductible?
Thanks, Gary
"Gary Brown" wrote
You need to get a written receipt, which can be a canceled check to the charity. Without proof that the toys were given to the charity, it'd be questioned, but the deduction not necessarily be denied. For non-cash contributions valuation is the bigger question, and you have a receipt for that.
Gary Brown wrote: ...
Yes, ... :(
You would have to write a check or get a receipt under the current rules irregardless of the amount. I'm sure that's been really beneficial to organizations such as the SA. Anybody have any information on the amount of estimated increased revenue to the IRS from this has been?
Technically, the "increased revenue" to the Government should be zero. To the extent that it's not, it's an indication of how many people have been cheating on ther tax returns.
Why? What about people who still make cash donations, and don't deduct them?
Seth
What about people who no longer toss cash and don't carry their checkbook around? The more the Government makes it to deduct charitable giving, the less charitable giving there will be.
Does the receipt for a cash contribution have to be cotemporaneous with the contribution, or can it be after the fact? I'm in particular thinking of church cash donations via numbered envelopes which can be tracked by the church and statements issued after the end of the year.
-- Rich Carreiro snipped-for-privacy@rlcarr.com
You have to have the receipt in your possession when you file. A church summary is acceptable and the end of the year.
"Charlie K" wrote
You might also need it when you're audited. ;-)
Said a bit diferently, contemporaneous here means the due dat of the tax return plus extensions.
Yup. But you had better have them when you're audited. To me, that's the more important thing to be assured of. In other words, the need extends far beyond the date you prepare and file the return.
What if you lose the documents in a fire?
Should you keep records for 3 years (normal time to be audited), 6 years (extended time to be audited if taxable income understated by
25% or more), 4 years (normal time to file an amended return in California), 10 years (normal statute of limitations), or something else.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.