Tax Breaks for Haitian Earthquake Relief
Posted on Wednesday, March 10th, 2010 at 9:01 am.
The recent earthquake in Haiti reminds us all to count our blessings. Even in today’s lousy economy, Americans are finding ways to give generously to ease the disaster – and Congress just gave us one more. Here are some tips for making the most of your earthquake relief donations:
• You can deduct up to 50% of your adjusted gross income for cash gifts to 501(c)(3) organizations or public charities working for earthquake victims.
• If you give more than $250, you’ll need a written receipt dated no later than the filing date of your return.
• Gifts of clothing, furniture, electronics, and household items are deductible at fair-market value, such as the price they would bring at a resale shop. Consider buying software, available at any office-supply store, for tracking your gifts and estimating their value. You might be surprised how much you save!
• Congress and the IRS have cracked down on inflated car and truck deductions. If you give away a vehicle, you can deduct its fair market value only if the charity uses it for “tax-exempt” purposes (such as a church using a van to drive parishioners). If the charity sells the vehicle, your deduction is limited to the charity’s actual proceeds.
• Washington has just passed special legislation letting you take a 2009 deduction for contributions of cash (but not property) on behalf of earthquake relief you make before March 1, 2010. That new law also eases recordkeeping requirements for such “accelerated” deductions, especially for those you make by phone. If you give by text message, for example, your phone bill satisfies the new requirements if it shows the recipient, date, and amount of the contribution.
As always, the IRS and Better Business Bureau caution you to seek out qualified charities. And please, if you have any questions on how best to help, be sure to call us, at 888-656-1293.
Precision Corporate Services is a leading Tax and Accounting Firm providing Tax Services in all 50 states. Our firm specializes in new and existing business: Entity Formations, Tax Planning, Bookkeeping, Personal & Business Tax Preparation, Business Owner Training, Business Credit Establishment and Consulting. We also specialize in working with: Home Based Business Owners, Internet Based Businesses, Brick and Mortar Businesses, Real Estate, Stock and Forex Investors establish their Accounting and Asset Protection. If you need a Tax Professional to ensure you are keeping more of what you earn through IRS compliance, request a free 30 minute tax consultation 1-888-656-1293
Tags: charity tax benefits, donation tax deductions, tax breaks for charity, tax breaks for haiti
Free Tax Consultation
Call or fill out the form below.
What our client's are saying…
I just can't say enough for the way you helped me. I have never experienced such professionalism as I have from your staff and I look forward to working with them next year.
RSS Feed
- Don't be Scammed by Tax Season Cyber Criminals
- New Reporting Requirement for Individuals with Foreign Financial Assets
- It's Not Too Late
- Those Gold Sales May Be Taxable
- Nominees Have 1099 Reporting Requirements
- Schedule Cs in the IRS' Bull's-eye
- QuickBooks Income Tax Reports And Filtering Options: Target The Right Output
