Charity

Usually, non cash charitable contributions from individuals to charitable organizations, which include most schools, are tax deductible on your tax return at fair market value to the extent of their tax basis (purchase price less depreciation). First, you should determine what the fair market value of the non cash charitable contributions is. If the value of the non cash charitable contributions are more than $250 you must have the non cash charitable contributions substantiated by a contemporaneous written acknowledgment.

Normally, the acknowledgment includes the amount of cash and a description of the non cash charitable contributions, and a description and good-faith estimate of the value of any goods or services received for the non cash charitable contributions. If the value of the non cash charitable contributions is more than $500, you must fill out Section A of Form 8283, Non cash Charitable Contributions. If you make non cash charitable contributions of non cash property worth more than $5,000, generally an appraisal must be done. In that case, you also fill out Section B of Form 8283. Attach Form 8283 to your tax return. All cash contributions made in tax years beginning after August 17, 2006, to any qualified charity must be supported by a dated bank record or a dated receipt and then it will be available for tax savings.