In the good old days (before 2005), taxpayers could donate a car to charity and claim a deduction for the fair-market value of the car. It didn’t matter if the charity only sold the car for a few-hundred dollars. The taxpayer could claim a deduction for the fair-market value of the car. That all changed in 2005. […]
We’ve explored the basics of charitable contributions and which organizations qualify for tax-deduction purposes. Today, I’ll explore the recordkeeping requirements for documenting your charitable contributions. Documentation for contributions by cash, check or credit card is straightforward enough. Maintain receipts or other records that show the amount donated and when. If you donate more than $250 […]
Can you claim a charitable deduction for donating a house to a volunteer fire department? The answer is yes, but it’s hard to strucure the transaction in such a way that you can get a big deduction. In 2010, the U.S. Tax Court ruled against a Wisconsin couple that had claimed a charitable contribution deduction […]
Warning: this post was written in 2010. As of 2021, it’s still valid information. As always, consult a tax advisor before making any decisions. —– A visitor to this website asks the following question: I bought my house almost 4 years ago for $50,000, put $10,000 in it for improvements. If I sell it for $72,000, […]