As you may be aware, the IRS allows tax deductions for qualifying charitable contributions. But the government has made charitable gifting a complicated area of the law resulting in much confusion. Many donors are unsure if they meet the gifting requirements for a charitable deduction. A knowledgeable tax law attorney can assist you in making sure your charitable contributions qualify for a deduction.
The IRS rules are very specific. In order to receive the deduction, you must meet all of the requirements. While the specifics should undoubtedly be discussed with an attorney or CPA to evaluate if you meet the criteria, some of the basic rules are easy to understand. First, your donation must be to a qualified charitable organization that the IRS has approved. Donations to individuals and unapproved organizations do not qualify for the deduction. Second, your donation cannot exceed a certain percentage of your adjusted annual gross income. This amount is determined based on what you are donating, what type of organization you are giving it to, and other factors. Your donation must also be in a permitted form. The IRS allows cash, property, gifts, and contributions to be deductible. You must be sure to value your cash, property, or contribution properly using its fair market value. You must also have records to back up your donation. Finally, it is important to report your donation appropriately on your tax return. Depending on the value of your donation, a different section of your tax return must be filled out and additional records may have to be attached to the return. These are just some of the basic requirements that the IRS has mandated you follow in order to receive a tax deduction for your charitable contribution.
Receiving an estate tax deduction can be complicated. please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Mr. Niemann will be happy to help you. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Estate Planning Attorney