Contributions to qualified charities are deductible within limits base on your AGI. (You can carry over any nondeductible excess for up to five years.) Included…
- Automobile expenses for volunteer activities computed at 14 cents per mile plus parking fees and tolls.
- Cash contributions up to 50% of AGI (100% for certain disaster relief contributions). (Either canceled check, bank statement, credit card statement or acknowledgment is required for all donations up to $249 and written acknowledgment from the charity for contributions in excess of $249.)
- Fair market value of clothing and other household items donated to charity. A qualified appraisal is generally required if the value of donated items exceeds $500.
- Gifts of capital gains property, such as appreciated stock. The current-year deduction is limited to 30% of AGI. Any excess can be carried over for up to five years.
- Out-of-pocket expenses incurred while engaged in volunteer activities, as long as they are properly substantiated.
- Deductions for charitable contributions of used motor vehicles, boats and airplanes now generally are limited to the amount the charity receives upon the vehicle’s sale and not the fair market value on the date of donation. Upon sale of the property, the charity is required to report to the taxpayer within 30 days the amount of proceeds realized on the sale. Charities are required to give a copy of written acknowledgments of such donations to the IRS.
- Appraised value of the vehicle donation may be used when the charitable organization uses the donated item in its charitable activity.