Charitable substantiation rules waived for 1994
Article Abstract:
Taxpayers can still get a deduction even if they fail to obtain a substantiating letter confirming a charitable contribution of at least $250. According to Notice 95-15, 1995-15 IRB XX, a good-faith effort to get substantiation would be enough. For contributions under $250, the IRS will accept a cancelled check. For contributions over $250, however, Sec. 170(f)(8)(A) demands that the contribution be confirmed by the donee organization in writing, even in cases when cash was used in the contribution and a cancelled check is available. In addition, the statement has to be submitted as the return of the taxpayer is filed or the due date for the return comes. Because this relief is intended only for $250 substantiation rules, the requirements of Reg. 1.170A-13(b)(2) still hold.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1995
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AMT can reduce (or eliminate) benefits of charitable gifts
Article Abstract:
The tax benefits of a charitable contribution are determined by the donor's tax position. Donors with significant economic income who are, therefore, subject to the alternative minimum tax (AMT) can maximize deductions for their contributions by first determining if an increased minimum tax credit will be created. If not, they should decrease their exclusion preferences so as not to affect their credit. Donors in a regular tax position for a given year who want to maximize their charitable deductions should make their contributions within the same year.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1991
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