Looking to keep the spirit of giving alive this holiday season? How about a generous donation to a local nonprofit?
There are 109 501 (c) 3 organizations based in Montrose, according to the IRS.
Not only can your contribution help a worthy cause, you can get back in return. Year-end donations to qualified 501 (c) 3 organizations are tax deductible.
There are several tax law provisions that have taken effect over the years, so here are a few tips to make a successful year-end tax deductible donation to your favorite charitable organization.
1) Donations of goods, such as clothing and household items, must be in good used condition or better to be tax deductible. However, if the donation is worth $500 or more, the items do not have to be in good condition if the items come with a qualified appraisal. These items could include furniture, electronics and appliances.
2) To deduct any charitable donation of money, the taxpayer must have a bank record or some kind of written document from the charity showing the name of the charity, the date and the amount of the contribution. Bank records include canceled check and bank or credit card statements.
3) All contributions are deductible for the year the contribution is made. If a donation is charged on a credit card before the end of this year, that contribution will apply to 2011 even if the payment is made in 2012.
4) Check if your intended organization is qualified by checking the IRS Publication 78, which lists all of the eligible organizations in the country.
6) When donating a motor vehicle, boat or airplane, tax deductions are applied to the gross proceeds from its sale and the claimed value is more than $500. The donor must receive a Form 1098-C, or a similar statement, by the organization. The form must be attached to the donor’s tax return.