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Charitable Giving: Tax Benefits

Did you know that donating to your favorite charity not only helps support an organization giving help to those in need, but, by donating, you can also reap the benefits of tax deductions?

Here are four tips and guidelines on how altruism can help you gain tax breaks:

Charitable-Giving | Layman Nichols

  1. Benefiting from tax deductions through means of charitable donations is only possible when the recipient organization is considered a “qualified organization” (see IRS Publication 526 for more details) which has a 501(c)(3) status. This excludes donations to individuals, political candidates, and political organizations.
  2. If you choose to give a non-cash donation to a qualified charity, you are entitled to a tax deduction of the item’s fair market value.
  3. Keep any statements or receipts of donations made to qualified charities. For cash donations of $250 or more, you must receive a qualified receipt from the charity prior to filing your tax return.
  4. If you give a non-cash donation with a fair market value of $5,000 or more, you must obtain a qualified appraisal of the item prior to filing your tax return.

If you have any questions on how charitable donations can affect your taxes, please feel free to contact us at Layman & Nichols, P.C. today.

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