Posted on 11/30/2006 7:33:03 AM PST by jonesboheim
In case you missed it, the President signed the new Pension Protection Act on August 17th. Most of the 400 pages of the Act deal with the under funding of pensions. However, if you keep paging through to page 301, you will see a section titled: Modification of Recordkeeping Requirements for Certain Charitable Contributions. Yes, that has nothing to do with pensions but it does affect the charitable contributions that you deduct on your tax return.
Do you drop some cash into the church basket every week? And keep a logbook of the amount given each week? Then at tax time, add up the amounts in the log book and deduct those totals on your tax return? That’s ok for your 2006 tax return as long as a cash donation is not $250 or more. (For 2006, if the donation is $250 or more, you need to have a receipt from the charity).
However, come January 2007, throw away your logbook and get out your checkbook!
Starting in 2007, you must have a cancelled check, credit card statement, or a written receipt from the charity in order to deduct any donation. The IRS will not allow the deduction, even if it is only $1 or $2, if you don’t have this documentation.
If you give cash and get a receipt from the charity, be sure the paperwork has the charity’s name and the date and amount of the donation.
You won’t have to attach the cancelled checks or receipts to your tax return but be sure to keep the documentation in case of an IRS audit.
The Pension Protection Act did not change the following IRS rules: Charitable contributions are still only deductible if you itemize deductions on Schedule A and the contributions must be made to qualified organizations.
That’s the latest news on cash contributions to charities!
Just another tax increase, really. Thank you Bush for another CONSERVATIVE action....I hear it rumored he is NEGOTIATION WITH THE DEMS to raise SS taxation by removing the maximum payment ceiling....if that is true, what little tiny legacy he has left, will go in the round-file.
Can we get the ACLU to represent Republicans as having their 14th Amendment (Equal Protection Clause) rights violated? Since Liberals don't contribute to charities (other than Unions and the DNC donations), it's OBVIOUSLY only affecting Republicans unfairly, right?
Well, I guess I won't be inclined to give any major $$$$$ to some of the bigger charities like the Salvation Army if I have to go to the trouble of getting receipts for my donations. It's just more trouble than it's worth IMHO!
No they did not.
You're trolling.
It clearly says...
"For 2006, if the donation is $250 or more, you need to have a receipt from the charity). Starting in 2007, you must have a cancelled check, credit card statement, or a written receipt from the charity in order to deduct any donation."
It actually added two new forms of documentation you CAN [not MUST] use. Instead of just a receipt from the Church...now you can use a cancelled check or credit card statement.
Go away DUmmy.
Not only that but if you are in the habit of donating items to a charity like Goodwill, and you estimate their value, do you think Goodwill is going to want to write up a receipt for you? Who will determine the value, you or Goodwill?
I don't know about other churches / religions, but mine provides little envelopes that you can use; members are pre-printed, visitors can fill in the blanks on the ones found in the pews. At the end of the year they send me a listing of all my tithes and offerings for the year.
Hell no.
This seems like a real stupid thing to do. It's bound to cut down on giving to charities.
Wow, was that a bi+ch-slap or what???
Or, you could write a check to The Salvation Army.
I'm glad I saw this, because I haven't been saving receipts for contributions under $250. I'll make sure I do, starting January 1.
OK, I'm confused. Can I deduct cash I throw into a collection plate or salvation army bucket without a receipt or not. Is the $250 limit a total or a per donation requirement?
It is.
Conservatives give over two-thirds of all recorded charitable contributions.
Writing a check is more trouble? Man you must lead a pretty sheltered life!
I have never given cash to charities or to church; I have always written checks in order to have proof of charitable donations.
Didn't Bill Clinton do something like that with his donated underwear? :-)
Goodwill always asks me if I WANT a receipt.
They just don't put a dollar amout on it.
It's probably a good idea to add a zero. Most of the items on their shelves are not worth the price. Many of the things I would pitch rather than display for sale, if I were running the show.
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