The IRS often puts charitable deductions under the microscope. This area has been ripe for abuse in the past, but the rules for establishing and documenting gifts to charity were recently tightened. As the deadline for filing 2012 returns fast approaches, the IRS is reminding taxpayers and practitioners about these requirements by posting nine tips for securing charitable deductions.

1. To qualify for a deduction, a taxpayer must make the donation to a qualified charitable organization. You can’t deduct contributions you make to an individual, a political organization, or a political candidate.

2. Taxpayers must file Form 1040 and itemize deductions on Schedule A. If the total deduction for all non-cash contributions for the year is more than $500, taxpayers must also file Form 8283, Non-cash Charitable Contributions, with their tax return.

3. If you receive a benefit of some kind in return for your contribution, you can only deduct the amount that exceeds the fair market value of the benefit you received. Examples of benefits that may be received in return for a contribution include merchandise, tickets to an event, or other goods and services.

What’s It Really Worth?

Generally, a taxpayer may deduct the fair market value of property donated to charity if he or she has held it longer Read More