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Tax Tips: Giving To Charity? Don't Forget The Paperwork
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Nila Rakhit, CPA 12/23/2008
Are you drawing up your year-end charitable contributions list? After you check it twice, add a reminder to gather the paperwork required to claim a gift for yourself: an itemized tax deduction.
Here are four tips.
1. Remember the new rules for cash donations. You'll need a written record to deduct cash donations on your 2008 tax return, no matter what amount you donate. The record must be written documentation from the charity or, if the donation is for less than $250, it can be a cancelled check, credit card, or bank statement.
If you contribute via payroll deduction, keep your pay stub and documentation from the charity (a pledge card, for example).
2. Know when old rules still apply. If you donate $250 or more in money or property, ask for a receipt from the charity showing how much you contributed and any benefit you received in return.
3. Log vehicle expenses. Your record should indicate the charity's name, the dates you used your car, and either the actual cost of gas and oil or the number of miles you drove. Parking fees and tolls are also deductible, whether you claim actual costs or the standard mileage rate for charitable driving (14 cents a mile for 2008).
4. Keep receipts for unreimbursed items. These include out-of-pocket costs directly related to charitable service, such as buying or cleaning uniforms used for your volunteer work.
Additional recordkeeping rules may apply, depending on what you donate. For instance, some noncash contributions require an appraisal.
(Nila Rakit can be reached at 617.678.4021. )
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