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AREAS OF PRACTICE
AREAS OF PRACTICE
How to Make Charitable Donations Before Tax Year Ends
There are many charitable donations that could affect your tax obligations for 2014. Many charitable donations may qualify as tax deductions which will potentially lower your overall taxable income. However, you must donate to a qualified institution. You cannot just give money away to another person or organization of your choice. Typically, qualified institutions are one of the following nonprofit groups:
It is important that you make your donation to a non-profit organization.
You will want to keep proper records of your tax donation. Many organizations will give you a receipt of your charitable donation, but you should also have your bank statement or credit card statement as well. You will need to show the amount of the donation, the date, and name of the organization.
If you make a non-cash charitable contribution, then you need to keep detailed records for your tax deduction. The guidelines for your records depend on the amount of your donation. For example, if you drop off clothes at Goodwill valued at $150, then you need to keep a record of the organizations name, address, date, location of donation, and description of the property donated. If your donation exceeds $250 but is under $500, it is important that you get a receipt from the organization in addition to the other information above. However, if you donate a car valued at $10,000, you are required to keep much more detailed records. It is best to talk with a Colorado Tax Lawyer if you are thinking of making a non-cash charitable contribution above $500.
There are many ways to properly donate to charity this year that will lower your taxable income. If you are thinking of giving either a cash or non-cash charitable contribution and would like to discuss it with Colorado Tax Attorneys, contact Politte Law today. You can call us at 303-261-8044 or fill out our online form.
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