Summary
Charitable contribution reporting requirements
Taxpayers making charitable contributions after 1993 will have to provide greater documentation to receive tax deductions, and charitable organizations will be subject to greater reporting requirements. Gifts in excess of $250 will require substantiation by the recipient organization instead of a cancelled check. The organization will also have to identify if any goods or services were given in return for all contributions of $75 or more. Information required in the substantiation includes description and valuation of the property, the contribution date and whether any thing was given in return.See the full content of this document
Extract
Running the hurdles.
OBRA's charitable contribution substantiation rules put new obstacles in the path of contributors and charities.
Beginning this year, dramatic changes in the tax rules for acknowledging and substantiating the giving and receiving of charitable contributions take effect. In accordance with the Omnibus Budget Reconciliation Act of 1993, contributors seeking a federal income tax deduction under Internal Revenue Code section 170 must produce, if asked, a written receipt from the charity if a contribution's value is $250 or more. This limit applies to each contribution, not to total contributions...See the full content of this document
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