You may already know that you can deduct charitable gifts on your tax return. To protect you from an audit, though, you need to understand just how those donations will impact your taxes. Fortunately, Weaver Insurance & Financial Advisorsis here to help. For more than 50 years, their financial advisors have helped their Waynesboro, VA, clients understand the ins and outs of charitable giving come tax time.
What You Can & Can’t Deduct
Donations of cash and property are tax deductible, provided you do not receive anything in return for those contributions. You should also keep in mind that you can only deduct donations made to 501(c)(3) tax-exempt organizations.
You cannot deduct donations if you receive something in return. If, however, there is a difference in value between the donation and what you received, then you may be able to deduct the difference. You also cannot deduct contributions made to a single person or non-tax-exempt organizations.
Providing Proof of Your Charitable Donations
You can only deduct charitable gifts in the year the donation was made. The team at Weaver Insurance & Financial Advisors recommend keeping records of your donations. For cash gifts, or those paid by check or credit card, keep a bank record or receipt. Contributions exceeding $250 will require written acknowledgment of the donation from the organization. Gifts of property and other non-cash items have various requirements based on the item’s value.If you still aren’t sure about deducting your donations to charity, consult with the experienced financial planners at Weaver Insurance & Financial Advisors. They can help you determine if your donations qualify for a deduction and can advise you on how to keep proper records of your charitable gifts. The assistance their financial advisors provides can make tax time a breeze. To learn more about the services they offer, including retirement planning and insurance, visit them online. If you are ready to meet with a financial advisor, call (540) 943-1221 to set up an appointment.