IBOA International

The Independent Business Owners Association International, Inc. (IBOAI) is the advocacy organization for North American Independent Business Owners (IBOs) affiliated with Amway®. The IBOAI advises Amway on every facet of the North American business, from products and promotions to operations and business guidelines. The IBOAI and Amway are dedicated to partnering for success with your input, support and participation.

Charitable Taxpayers - November 2012 Tax Tip

In order for charitable contributions to be deductible, the contribution must be made to qualified charitable organizations.

Ask your potential charity about its tax-exempt status.

You can also go to IRS.gov in the "Exempt Organizations Select Check", an online search tool to check on charities federal status and whether or not the charity has had its exempt status revoked.

Please note that charitable contributions are only deductible if you itemize.

TAX TIP - If you plan to make a large contribution at the end of the year, but it wouldn't be enough to let you itemize deductions, make it in January of the following year where it might make a difference.

Also note that charitable contributions are only deductible in the year paid, not the year pledged.

Cash contributions (cash, check or credit card) and the fair market value of most property you donate is deductible.

If you receive something in return for your contribution such as merchandise, sporting tickets, etc., only the amount donated that exceeds the fair market value of what you received can be deducted.

You must have records proving up your donation if you get audited.

Any contribution of $250 or more must have written confirmation from the charity that includes charity name, date and amount.

If you donate non-cash items valued at $500 or more you must file form 8283 with your tax return.

If you donate non-cash property worth more than $5,000 you must obtain a property appraisal and attach it to your return along with form 8283.

Learn more about Joe DePetris, Jr., and IBO tax return preparation and tax issues at IBO Bookkeeping 101.

Joe DePetris Contact Information:
501 Elm Street, Suite 385
Dallas, Texas 75202
Phone: 214-748-1917
Fax: 214-741-9131
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This article is provided as an educational resource for your guidance, and is strictly informational. It does not constitute legal, accounting, or other professional counsel. Nothing included herein implies a recommendation by the author, the IBOA International, or Amway, of any course or method of regulatory compliance. Readers and users who intend to take, or refrain from taking, any action based on information contained herein should first consult with their qualified tax advisor, preferably a C.P.A., or appropriate regulatory authorities.