6 Tax Tips For Charitable Giving -

6 Tax Tips For Charitable Giving

Richard Lipton, founder of Lipton CPA & Associates, says if you make charitable donations and want to claim a tax deduction for your gifts, you must itemize your deductions. He offers the following tips for giving business gifts to charity.

Donate-Charity--300x298Richard Lipton, founder of Lipton CPA & Associates, says if you make charitable donations and want to claim a tax deduction for your gifts, you must itemize your deductions. He offers the following tips for giving business gifts to charity:

  1. Qualified charities. You can only deduct gifts you give to qualified charities. This can include churches, synagogues, temples, mosques and government agencies, but they must be qualified charities.
  2. Monetary donations. Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return, regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements.
  3. Household goods. Household items include furniture, furnishings, electronics, appliances and linens. If you donate clothing and household items to charity, they generally must be in at least good used condition to claim a tax deduction. If you claim a deduction of over $500 for an item, it doesn’t have to meet this standard if you include a qualified appraisal of the item with your tax return.
  4. Records required. You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. Additional rules apply to the statement for gifts of that amount. This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the required information may meet both requirements.
  5. Year-end gifts. You can deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year it will count for that year.
  6. Special rules. Special rules apply if you give a car, boat or airplane to charity. Check with your accountant for details.

Article courtesy of TIRE REVIEW.

You May Also Like

Tax Planning Strategies For 2023

As the end of your tax year approaches, several general rules might help guide you to real tax savings.

The owners, operators and managers of many service and repair shops rely on the tax-saving abilities of professionals or software programs. Substantial tax savings are, however, largely the result of moves undertaken before the close of the tax year.

The income-shifting strategy of accelerating income to offset unusually high expenses, or postponing income until a later year when the tax bill may be lower, works only for those using the cash basis method of accounting. Every business can, fortunately, employ a number of legitimate strategies before the end of the year that make tax preparation easier, as well as producing a smaller tax bill.

How First-Time Auto Shop Owners Can Find Financing Options

Find financing by knowing your market, making yourself viable and having an experienced team.

Trends That Drive Aftermarket Service Opportunities

Economic data is often out of date before it’s been analyzed – but here’s current information about the auto aftermarket.

Supply Chain Procurement Management 101: Making Better Purchasing Decisions

Strategies for managing the impact of freight disruption.

Use This Everyday Technology To Fight Identity Fraud

Mobile and ID scan technologies, now widely used in online banking, could help dealers during online transactions.

Other Posts

Grow Your Shop – Spend Money to Make Money

Never be afraid to part with cash if your business will benefit in the long run. It’s an investment, not a problem.

What Your Credit Score Can Do To Your Business

Having bad credit can be damaging for shops because it keeps you from pursuing growth or strategic decisions.

5 Reasons Planning Beats Panic

Business may be turbulent, but being prepared will help make the journey more enjoyable.

Online Ordering Isn’t A Fad

Online sales in the automotive aftermarket continue to grow.