How Is My Charitable Income Tax Deduction Determined?
Charitable deductions can result in a tax deduction from your federal taxes. In order to claim the tax deduction, you must itemize your deductions using Schedule A.
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Monetary Donations
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If you make a monetary donation, you can deduct the amount you donated from your taxes minus the value of anything tangible you received in return.
Property Deductions
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You must use the fair market value of any good that you donate to charity. Many charitable organizations publish a list of the fair market value of commonly donated items.
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High Value Items
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If you donate an item valued over $5,000, you must have the item officially appraised in order to claim a tax deduction.
Automobiles
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If you donate a car and the charity immediately sells the vehicle, you can only deduct the amount that the car was sold for rather than the fair market value of the car. If the charity uses the car for itself, you can deduct the fair market value.
Warning
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You can only deduct donations made to qualifying charitable organization. You can check to see if an organization qualified by using the IRS charitable organizations database.
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