Spring Cleaning

It is that time of the year again!  Winter has passed and it’s time to do some Spring Cleaning.  As you are cleaning out the closets and dresser drawers of old clothes and shoes, the linen closet of sheets, and the kitchen of dishes and appliances……… this would be the perfect time to start making charitable contributions to the local organizations in your area.

Here are a few tips about charitable contributions to help you decide which organizations are best for you in tax year 2012.

1-Know their status:  Approximately 275,000 organizations lost their tax-exempt status in 2011.  Go to http:/www.irs.gov/charities to check the status of the organization you would like to donate your items

2-Have proof:  When donating any amount of cash to a charity the IRS requires you to have as proof a bank record or receipt including the name of the organization, amount and date of the contribution. Bank records are canceled checks, credit card or bank statements.

3-Extra paperwork: If you have a noncash donation of more than $500, You must fill out form 8283 which will ask for information such as the organization you donated the property to, what you donated, date it was contributed, when you got it, how you got it, cost, what the value is not, and how you determined the value.

Be informed!

The Taxchick