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Claim Charitable Donations For Tax Purposes

Each year, the IRS allows you to claim charitable donations as a reduction in your tax liability. If you are attempting to lower the amount you owe to the Internal Revenue Service (IRS), you might consider claiming a charitable donation. When you donate to a charitable cause, you not only help yourself in terms of the taxes you owe, but you also help contribute to your community and positively to society. There are several amazing charities to choose from. Here are some helpful things to know before attempting to claim such deductions.

First, make sure that your contribution qualifies. Remember that you must donate property or cash to a qualifying organization. Check with the organization and make sure that your donation will qualify. Only those who itemize their deductions are allowed to take advantage of charitable contributions on their taxes.

Then, you will need to make certain you have proper documentation supporting your contribution. The IRS requires supporting documents for cash contributions. For example, you will need to assess the fair market value of any property you wish to donate. If that totals more than $500, complete IRS Form 8283. If the donation value totals more than $5,000, you will need to have a written appraisal completed.

If your cash contribution is less than $250, you just have to make sure you have a credit card statement, bank statement or cancelled check. For more than $250, you will need a written acknowledgement from the charity stating how much you contributed. For property, you must have a record of the charity with its address included. If the fair market value of your property is more than $500, you will need to make a written statement of how you obtained the property. For more than $5,000, you will need to get a qualified appraiser to provide a written statement.

For specific documentation questions, consult your tax specialist or accountant. More information can be found through the IRS. You can make a huge difference in your community when you donate. Find a charity that you can closely identify with. You might also want to research state and federal tax qualifications for donations made to schools and charities that help the working poor.

Guardian Tax Resolutions will help you get IRS tax relief today from professionals that are experienced and qualified with significant expertise in IRS tax problems.

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