Can you believe 2014 is almost over? In addition to the hustle and bustle of the holidays, this is the time of year minds turn to year-end tax tips. Philanthropy and giving back to the community all year is important to Miles Consulting, which is why we encourage charitable giving activities. However, whether you’re donating as a business or individual, it’s important to remember recent changes to tax law.
4 Year-End Tax Tips for Charitable Giving
1. Double check eligibility. You’ll only receive a deduction for organizations that are qualified, so make sure you use the IRS’ Select Check to verify their status. It’s also worth noting that, even if they aren’t listed in Select Check’s database, government agencies, churches, temples, synagogues and mosques are qualified to receive deductible donations.
2. Track everything. Keep a record of everything you donate, whether it’s a monetary donation or property such as clothes or household items. Ask the organization for a receipt that includes the charity’s name, date of contribution and a summary of what was donated.
3. Don’t miss the deadline. A year-end gift needs to be made in 2014, which means the check either needs to be mailed or the credit card needs to be charged before the end of the year.
4. Make a list, check it twice. You might not be finding out who’s naughty or nice, but by accurately itemizing your deductions rather than opting for the standard deduction, you’ll be able to claim those made for charitable contributions. Not sure if it’s worth it? 2014 Form 1040 Schedule A can help you figure out if it would be better to itemize your deductions or claim the standard.
What else do you need to know? There are different rules when it comes to donating anything more than $500 (such as a car, boat or airplane). This article goes into greater detail about how the deduction is determined and forms to provide along with your tax return.
Do you make charitable giving a priority? What year-end tax tips have you heard that you’d like to know more about?
Miles Consulting Group, Inc. is a professional service firm in San Jose, California specializing in multi-state tax solutions. Our firm addresses state and local tax issues for our clients, including general state tax consulting, nexus reviews, tax credit and tax incentive maximization, income tax and sales/use tax planning and other special projects, including the new California Competes Tax Credit and the California Manufacturers’ Partial Sales Tax Exemption. To learn more, contact us today at www.MilesConsultingGroup.com.
Photo Credit: Death To The Stock
