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I heard that if a contribution of $250 or more is made, the IRS required certain documentation. Please clarify this.

docuentation of charitable contributions
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Harold Goedde
The IRS requires that you obtain a written receipt from the charity. If the donation is property the charity should provide you with an estimate of its value. In addition, the charity must indicate the following information on the receipt: "We (name of charity) did NOT receive any goods,money,property, or other services in exchange for the contribution". If this information is NOT on the receeipt, and your tax return is audited, the IRS will DISALLOW the contribution. This authotity is specifically provided in the tax regulations. Recently, the IRS denied a $1,500 donation of property by a taxpayer because this information was not on the receipt. The taxpayer appealed the denial to the U.S. Tax Court and the Court unanimously agreed with the IRS saying they have this authorityto to deny such contributions under the regulations pertaining to substantiation of charitable contributions.


If the value of the prioperty is $5,000 or more, the taxpayer must obtain an independeent appraisal of the property's value and the appraisal must signed by the appraiser, taxpayer, and the charity. Also, the same statement that "no goods,services, money, or other ,property was received in exchange for thr contribution of (name of propoerty)" must appear on the receipt or the contribution will be disallowed.
Leave a Comment 427 weeks ago

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Robert Ferguson
2012 Tax rules associated with Schedule A of the 1040 states the limit for undocumented contributions is $500. If you have a contribution that exceeds the $500 limit then you need the signed receipt from the organization the donation was made to and a a good faith estimate of the item(s). If there are a number of items that were contributed the Salvation Army has a website recognized by the IRS where you can go for their estimate of each item value for many household items. The website is; www.satruck.com/. If the value exceeds the $5000 amount you will need a current estimate from an appraiser of the type of item contributed and the 8283 form mentioned below. Make sure the appraiser signs the form and adds his contact information.

There is also an IRS form that will be needed to be sent in along with the contribution slip from the organization. The form is 8283. If you e-file your tax forms then you need to add form 8453.
Leave a Comment 426 weeks ago

 

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