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Tax Deductions
for Charitable Contributions
How to Value Donated Property to Claim Itemized Deductions
Not all charitable contributions are made in cash. The
rules state that when noncash property is donated to a charity, you are
generally allowed to deduct the fair market value of that property.
Determining the fair market value of assets can sometimes be tricky.
The fair market value of stocks and bonds with an active market is the
average price between highest and lowest selling price on the valuation
date. If you donate your car, you may also claim the fair market value.
The fair market value takes into account many factors, including the
vehicle’s condition. The fair market value may differ substantially from
the vehicle’s “Blue Book” value.
If your contributions entitle you to merchandise, goods, or services that
include admission to a charity ball, banquet, theatrical performance, or
sporting event, you can only deduct the amount that exceeds the fair
market value of the benefit received.
For any contribution of $250 or more, you can claim a deduction only if
you obtain a written acknowledgment from the qualified organization. You
must obtain this written acknowledgement by the date you file your tax
return or the due date of the return, whichever is earlier. If you donate
property valued at more than $5,000 you must obtain a qualified written
appraisal. You cannot deduct the value of your time or services, personal
expenses, appraisal fees, or contributions to specific individuals.
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