Bakalan Menyesal Selamanya di Dunia dan Akhirat, Jangan Pernah Menikah dengan Wanita Yang Memiliki 10 Sifat Ini
Some taxpayers usually think that their tax deductions end the moment they make a donation. This is literary, throwing valuable dollars away as the Internal Revenue Service provides different channels through which a taxpayer can take advantage of his/her benevolence.
Driving Expenses: This is one of the deductions a taxpayer can utilize; it is the deduction of the travel expenses getting to and from a volunteer location. Some errands,like delivering food to the needy,counts and one can take advantage of a standard deduction of 14 cents per mile on his/her tax return. It is even better if one keeps track of the actual costs of gas while carrying out philanthropic errands with a private car. It gets even better, as any parking fee or tolls paid can be included.
Miscellaneous Expenses: Some costs paid to a qualified organization's expenses that are not refunded can also count as charitable deductions. This may involve purchasing office supplies for the organization's administrative functioning or even stamps.
Some volunteer works may require one to purchase a uniform or some task-specific clothing, like a Red Cross aide. Not only are the costs of purchase deductible, but also the amount used to keep it clean.
Student Boarding: Some people stay with students on their holidays. There is a three-part test that if met, might lead to deduction of some expenses linked with that student occupant, who can either be a foreign or an American student. To qualify for this deduction, the student must not be a dependent or relative. Second, the student has to be a full-time student in the 12th grade or lower at a U.S. school. Lastly, the student lives in one's home under a formal contract with a qualified organization to provide educational opportunity to the student.
Up to $50 can be deducted each month the student resides in one's premises. The IRS even defines a month as 15 or more days; a student who meets the three conditions resides in a well wisher's residence.
Property Appreciating Gifts: Someone can evade paying capital gains and at the same time, benefits from tax deductions by simply giving appreciated assets. To benefit more from this provision, a taxpayer can donate stock he/she owned for over a year whose value has considerably increased. If you opt to sell the appreciated stock, the profit is subjected to a tax of 15% long-term capital gains rate. However, directly giving the stocks directly to qualified organization qualifies for one to claim a deduction for the full price of the asset at the time it was donated and evade the capital gains bill.
If you purchased one hundred shares at the rate of $5/share and by the time you donated it to charity, it was going at $10/share, the appreciated $1,000 can be claimed as a charitable deduction. These valuations apply to long-term holdings. In case the stocks were owned for one year or less, then only the original purchasing price -$500 is deductible. You need to get in touch with your favorable charity to find out if it can be of help with this donation process. Quite a number of charitable groups have set up programs to accept gifts of appreciated property.
Help Pay Public Debt, Ease Your Tax Bill: The treasury sells to the Treasury securities like T-bills, notes, bonds and savings bonds, literary borrowing money from the public. This public debt helps the U.S. government run its operations. Any contribution made by individuals to help reduce the national burden is deductible as a charitable contribution on the fellow's return for the year in which the contribution was made.
Such contributions can be made as a separate check billed to Bureau of the Public Debt and sent to: Bureau of the Public Debt, Department G, P.O. Box 2188, Parkersburg, W.Va. 26106-2188. You can save a stamp and stick the check in your tax return envelope if you so wish.
Some of these charitable donations, despite not being commonly taken, they are still subjected to the tax rules. For a contribution to qualify for a deduction, it first has to be made to a qualified organization; the IRS has guidelines that have to be met by an organization to qualify. Publication 78 of the IRS contains the updated list which is available online. Further to that, you can drop the IRS a call at (800) 829-1040, TTY/TDD connection at (800) 829-4059 to find out if an organization is qualified or not.
Ensure that all documentations that are related to your donations are intact, such as bank or charge card statements, cancelled paychecks, for all monetary gifts. An official receipt must be issued by the recipient organization for gifts worth $250 or more before claiming a deduction.
It is crucial to note that not all good deeds qualify for tax deductions. The IRS won't let you write off if you make contributions to a particular individual, despite of their level of need. Also, contributions made to homeowner associations, social or sports clubs, civic leagues, or chambers of commerce also don't qualify for tax deduction. Personal expenses, like the cost of meals on a volunteer mission, appraisal fee to determine the value of donated property, as well as contributions made to a group formed to lobby for law changes, all don't warrant a tax deduction. Also not qualifying, is the value of your time and services, like income you forfeited to work as an unpaid volunteer
Most of these IRS-approved contributions may be little-known, but might save you a lot of tax money. Just never forget to keep track of your records; they are very important when filing your returns.
Rob L Daniel and partners of Limon Whitaker & Morgan, for years have helped businesses and individuals Nationwide, with their delinquent IRS & State tax problems. The firm is based in Los Angeles, California USA. [http://www.limonwhitaker.com] Tel: 888.321.6188
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