Greetings!
With the holidays fast approaching, you can be in a charitable frame of mind and also save on your taxes by making donations to the charity of your choice. |
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Charitable Contributions |
What can I donate?You can donate property, money and your time to a charity. What is the value of my donation for tax purposes?A deduction is usually available for the fair market value of property. However, for certain property, the deduction is limited to the lower of your cost basis (what you paid) or the fair market value (what you could reasonably sell it for). While you cannot deduct the value of your time donated to charity, you may be able to deduct charity-related travel expenses (see New Mileage Rates below) and some out-of-pocket expenses. What kind of records do I need to keep for these contributions?A written record of charitable contribution is required in 2008. A donor may not claim a deduction for any contribution of cash, a check or other monetary gift made on or after January 1, 2007, unless the donor maintains a record of the contribution in the form of either a bank record (such as a cancelled check) or a written communication from the charity (such as a receipt or a letter) showing the name of the charity, the date of the contribution, and the amount of the contribution. Tip: Contributions of appreciated property (i.e. stock) provide an additional benefit in that you avoid paying capital gains on any profit. See the IRS Publication 561 for more information. |
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New Mileage Rates for 2009 |
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Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
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