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Show tiys hw ;tabIicontributtas "; v fives tips how to make it w,.i, 5 e " Wor on your return 1' Willi the now year around the E,s er you may find it's too late for ifit, '-t tax-saving tactics, but it's not t$: j " for charitable contributions. '(,' Jf can write a check or make a ki'l lllion as late as Dec. 31 and still :icff uct the amount on the 1988 tax ' t Sum - assuming, of course, that h, on your tax return. ( 'wording to Tom Macdonald, "(jjern Chapter President of the ir Association of Certified Public 1 Uintants, the deduction for haritable contributions is limited, i(" Li most people will come nowhere IS; rf (he maximum level. For cash 'if: to public charities, the ' - Seduction is capped at 50 percent of Aisted gross income. The ft jeduction for donations of long-term apital gains property, such as is, is limited to no more than 30 X jercen't of adjusted gross income. Men you donate cash, your 3s writable deduction will usually S equal the amount of your gift. ?; 1 wever. ,f you comi.b l-hanty and receive a benefit rom j . yu may deduct only the louTt that s above and beyond the value of the benefit you receive For example if you contribute $50 to a "onprof.t organization and in x change receive a free subscription to a magazine normally costing $20 .vou may deduct only R charitable contribution Even if you don't have any cash to spare, you may still be able to make oo? 7tatble CO,ltribution. Consider contributing- infrequently used ems such as old typewriters or clothes. In addition, if you Z volunteer work, you may deduct your unreimbursed expenses for sucn items as transportation telephone calls or uniforms If you donate a long-term asset (one owned more than six or 12 months, depending on the acquistion date) and the asset has increased in value, you can usually leduct the fair market value of the Property as long as the gift is directly related to the charity's business. If this is not the case, your deduction may be limited to the property's fair market value minus any unrealized capital gains. One note of caution: if you donate an appreciated asset that you have held less than six months, you will probably be able to deduct only your "basis," or the amount you Paid for the property. You should also be aware that donations of appreciated property may make you more vulnerable to the Alternative Alter-native Minimum Tax - and possibly a higher tax bill. The IRS requires you to substantiate sub-stantiate the value of your donation. you gift is worth less than $500, just keep a receipt showing the name of the charity, the amount or nature of your gift, and the date on which the donation was made. If the value of your non-cash gift falls between $500 and $5,000, you must complete Section A or IRS Form 8283. If you were extremely generous this year and donated property valued at more than $5,000, you will have to hire a "qualified appraiser" to verify the value of your non-cash gift. (Don't forget that the appraiser's fees may be deducted as a miscellaneous expense, subject to a two percent floor). In addition, you will have to submit a copy of the written appraisal ap-praisal along with Form 8283. Make sure that you, the organization that received the gift, and the qualified appraiser fill out the proper sections sec-tions of the form. If the holiday season is tugging at your heart and purse strings, you may want to consult a CPA for some practical advice on how to successfully turn today's charitable contribution into April's tax writeoff. |