Noncash donations of property to charitable organizations are tax-deductible, according to Legal Zoom. The amount of the donation is based on the fair market value when it is contributed, states the Internal Revenue Service.Continue Reading
The IRS limits the total amount of tax deductions a tax filer can claim in a given year, according to IRS Publication 526. In most cases, deductions are capped at 50 percent of adjusted gross income, though certain conservation organizations have a higher limit. Filers with income above certain levels are limited further in their tax deductions.
Only donations to qualified organizations are tax-deductible, according to Legal Zoom. Donations to groups that are organized for religious, charitable, educational, scientific or literary purposes qualify as tax-deductible, as do donations to groups intended to prevent cruelty to children and animals.
Claiming a tax deduction on donated property requires a receipt, according to Legal Zoom. If the value of the donated property is less than $250, a simple receipt stating the date and type of donation is sufficient, while donations up to $500 require acknowledgment from the charitable organization in writing. For donations up to $5,000, the origin of the property's acquisition by the donor must be disclosed and an additional IRS form filed. Donations of goods worth more than $5,000 have to be appraised independently.Learn more about Income Tax