Claim Tax Write Off By Donating

 

Less than $250: If the value of your single noncash donation is less than $250, all you will need is a receipt or reliable written record. Reliable written records must include the name and address of the organization, date and location of the contribution, description of the property, fair market value of the property and, if applicable, any terms or conditions attached to the donation.

Between $250 and $500: If the single noncash donation is between $250 and $500, you will also need an acknowledgement as outlined above for out-of-pocket expenses.

Between $501 and $5,000: If the value is between $501 and $5,000, you will also need to file IRS form 8283, Section A.

More than $5,000: If the value is greater than $5,000, in addition to written records and an acknowledgement, you will need a qualified appraisal and declaration of appraiser and donee acknowledgement (IRS Form 8283, Section B). If you have an item valued over $5,000, you may want to sell the item and donate cash, thereby eliminating the cost of the appraisal.

Holly Nicholson is a certified financial planner in Raleigh. Reach her at www.askholly.com www.askholly.com or P.O. Box 99466, Raleigh, NC27624. She cannot answer every question.
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