Tax Tip

 

Increase Your Charitable Deductions...

Keep an itemized list of your charitable contributions given to a qualified charitable organization. The most underestimated charitable contributions are the non-cash contributions. Keep an itemized list of the clothing, appliances, furniture, etc you give to qualified organizations and use certified market valuations to estimate their value. If you want to bullet proof yourself...take a couple snap shots or a make a quick video of the contributions.

If the IRS ever questions the deductions, you have the video and the itemized list and always get a receipt signed by the charitable organization that you did donate these items, the IRS will allow these deductions. My clients who follow this tip easily double and triple their non cash deductions which means more money in their pocket at the end of the year.

In addition, keep a running list of all the cash you give out here and there. $10 for this and $20 for that will add up at the end of the year.

Another tip for this week is don't have a garage sale. Instead donate the items to a qualified organization and deduct them on your tax return.

If you typically make large charitable contributions and have other significant itemized deductions, adjust your payroll withholding so you get back this money each week instead of at the end of the year.

Keep accurate records and you will pay less out in taxes each year. By increasing your deductions on several things you will notice this at tax time.

This tip is a starting point for limiting your taxes. All the information is not included here due to space limitations. Always consult a professional before using a tax tip. These tips should be used to ask your CPA or investment advisor about.

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If you prepare your own tax return, take a look at these 10 tips to help you. Look at our
tax preparation services. They are cheaper than going down the block!

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Last modified: April 15, 2003