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| You must fill out Form 8283, and attach it to your return, if your deduction for a noncash contribution is more than $500. If you claim a deduction for a contribution of noncash property worth $5,000 or less, you must fill out Form 8283, Section A. If you claim a deduction for a contribution of noncash property worth more than $5,000, you will need a qualified appraisal of the noncash property and must fill out Form 8283, Section B. If you claim a deduction for a contribution of noncash property worth more than $500,000, you also will need to attach the qualified appraisal to your return. Special rules apply to donations of certain types of property such as automobiles, inventory and investments that have appreciated in value. |
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You may deduct charitable contributions of money or
property made to qualified organizations if you itemize your deductions.
Generally, you may deduct up to 50 percent of your adjusted gross income,
but 20 percent and 30 percent limitations apply in some cases.
You may deduct a charitable
contribution made to, or for the use of, any of the qualified
organizations that otherwise are qualified under section 170(c)
of the Internal Revenue Code. A state or United States
possession (or political subdivision thereof), or the United States or the
District of Columbia, if made exclusively for public purposes if a
qualified organization. A community
chest, corporation, trust, fund, or foundation, organized or created in the
United States or its possessions, or under the laws of the United States,
any state, the District of Columbia or any possession of the United States,
and organized and operated exclusively for charitable, religious,
educational, scientific, or literary purposes, or for the prevention of
cruelty to children or animals are also qualified. A church, synagogue, or other religious
organization, a war veterans'
organization or its post, auxiliary, trust, or foundation organized in the
United States or its possessions are also qualified. Additional
qualified organizations include:
* A nonprofit volunteer fire company. * A civil defense organization created under federal, state, or local law (this includes unreimbursed expenses of civil defense volunteers that are directly connected with and solely attributable to their volunteer services). * A domestic fraternal society, operating under the lodge system, but only if the contribution is to be used exclusively for charitable purposes. * A nonprofit cemetery company if the funds are irrevocably dedicated to the perpetual care of the cemetery as a whole and not a particular lot or mausoleum crypt. |
| Contributions must actually be paid in cash or other property before the close of your tax year to be deductible, whether you use the cash or accrual method. If you donate property other than cash to a qualified organization, you may generally deduct the fair market value of the property. If the property has appreciated in value, however, some adjustments may have to be made. |
| In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks. Contributions to certain private foundations, Veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income (computed without regard to net operating loss carrybacks). The 50 |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Federal Tax Refresher Course rights reserved. |
| Revised: 05/28/15 |
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