Reporting Non-Cash Contributions
- April 16, 2013
- David Greene
- Comments Off on Reporting Non-Cash Contributions
Keeping proper records to support contributions claimed as a tax deduction can be tricky. If you claim cash contributions, you must have a receipt from the charitable group to whom you gave the contribution. Also, the gift must be to a recognized (Section 501 (c)) charity. For example, a gift to a minister personally generally is not deductible, but a gift to the church is. For non-cash contributions, if the value of the contribution is more than $5,000.00, the donor must obtain a qualified appraisal and attach an appraisal summary to the return. In general, most smaller non-cash contributions can be supported by referring to the value of similar items in the community. If you are unsure about how to report a gift, it is always better to err on the side of caution.