Q:

What information should be included on an itemized donation list?

A:

Quick Answer

The Internal Revenue Service, or IRS, suggests eight pieces of information to include in a charitable donation list. Charitable donations made to qualified organizations may reduce the amount of a tax bill according to IRS regulations.

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Full Answer

The IRS suggests some of the following information be included when submitting an itemized charitable donation list.

For a legitimate tax deduction, the donation must be made to a qualified organization. IRS Publication 526, Charitable Contributions contains the rules for what constitutes a qualified organization. For a deduction, it is recommended to file Form 1040 and itemize deductions on Schedule A. If there is a benefit from the contribution, the deduction can not exceed the fair market value of the benefit received.

Donations of stock or non-cash property are valued at the fair market value. Clothing and household items should be in good shape. There are special rules for vehicle donations. Property also qualifies at fair market value, and bank records are required for any amount of stock, cash, checks or other monetary gifts. In addition, the date and amount of contribution must be recorded. Text message donations require a telephone bill record showing the name of the receiving the donation.

A deduction for a contribution of $250 or more requires a bank record, payroll deduction or written acknowledgment from a qualified organization that shows the amount of the cash and description of the property contribution. The record must also show if the organization provided goods or services in exchange for the gift. A donation of $5,000 or more must complete Section B of Form 8283, which normally requires an appraisal by a qualified appraiser.

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