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Show Donation of Property All charitable contributions of property must be substantiated to be claimed as a deduction, the Internal Revenue Service said. Any deduction claimed for property donated to an organization must be verified through a settlement to the IRS listing the dates and amounts of each contribution, the type of property donated, and the method of determining the porpcrty's value, the IRS said. If used furniture, clothing or other property, for example, is donated, it may be claimed as a deductible contribution to the extent of its fair market value. Fair market value is the price at which the property would change hands between a willing buyer and seller. For each piece of property valued over $200, the original cost or other basis in the property, fair market value, appreciation, conditions of the gift and a copy of the gift's appraisal ap-praisal must also be included in the tax return. This required information must accompany the tax return, according to the IRS. Two free IRS pamphlets, Publication 561, "Valuation of Donated Property," and Publication 526, "Income Tax Deduction for Contributions," discuss contributions and can be obtained from most IRS offices. |