Gifts to Charity: Six Facts About Written Acknowledgements

 

Throughout the year, many taxpayers contribute money or gifts to qualified organizations eligible to receive tax-deductible charitable contributions. Taxpayers who plan to claim a charitable deduction on their tax return must do two things:

• Have a bank record or written communication from a charity for any monetary contributions.

• Get a written acknowledgment from the charity for any single donation of $250 or more.

Here are six things for taxpayers to remember about these donations and written acknowledgements:

• Taxpayers who make single donations of $250 or more to a charity must have one of the following:A separate acknowledgment from the organization for each donation of $250 or more.One acknowledgment from the organization listing the amount and date of each contribution of $250 or more.
• The $250 threshold doesn’t mean a taxpayer adds up separate contributions of less than $250 throughout the year.
• For example, if someone gave a $25 offering to their church each week, they don’t need an acknowledgement from the church, even though their contributions for the year are more than $250.
• Contributions made by payroll deduction are treated as separate contributions for each pay period.
• If a taxpayer makes a payment that is partly for goods and services, their deductible contribution is the amount of the payment that is more than the value of those goods and services.
• A taxpayer must get the acknowledgement on or before the earlier of these two dates:
• The date they file their return for the year in which they make the contribution.
• The due date, including extensions, for filing the return.
• If the acknowledgment doesn't show the date of the contribution, the taxpayers must also have a bank record or receipt that does show the date.

Source:Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

  

2017 Standard Mileage Rates for Business, Medical and Moving

Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 53.5 cents per mile for business miles driven, down from 54 cents for 2016
• 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
• 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.   The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.




Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680