Pay attention to the tax rules on deducting charitable gifts

As 2014 winds down, you may be planning to complete your charitable giving for this year. Here are a few tax concerns to keep in mind.

1. Your gift is tax-deductible only if it is made to a "qualified" charity.

2. The value of services you render to a charity is not deductible.

3. Out-of-pocket expenses while doing volunteer work for a charity, such as telephone charges, travel, and uniforms, are deductible.

4. Automobile expenses may be taken at the standard 14 cents per mile, or you may deduct your actual expenses.

5. Tickets to charitable events are only deductible to the extent the price exceeds the value received. For example: You pay $35 for a show put on by the charity, and the normal price of the ticket is $10. Your deduction is limited to $25.

6. Cash contributions of any amount must be substantiated by proper records. For contributions under $250, a bank record, cancelled check, or credit card record will usually suffice.

7. Contributions of $250 or more must generally be substantiated by a written acknowledgment from the charity obtained before you file your tax return.

8. If non-cash contributions (other than publicly traded securities) exceed $5,000, a qualified appraisal is required.

9. Charitable contributions are deductible only if you itemize, and there are limits as to the amount of donations that you can deduct in any one tax year.

If you have questions about the tax issues related to charitable giving, contact our office.