Georgetown, TX CPA - Sharon Maslon - Forensic Accountant
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Charitable Donation Changes

 

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  Charitable Donation Changes
       For 2007

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The Pension Protection Act of 2006 made several changes to the deduction for charitable donations that you should be aware of for your 2007 filing. For example: 

Gifts of clothing and household items - You may still claim a deduction for the value of these items, but only if they are in “good” condition.

Cash gifts - Beginning in 2007, you will be required to support cash donations such as Sunday offering collections and cash donations to a Christmas kettle outside a department store by bank records or receipts from the charities.

Donations from IRA funds - The Act creates a new tax break for individuals age 70 ½ or older. Distributions of up to $100,000 from an individual retirement account are tax-free if paid over to a charity. This break is only temporary though; it applies only to distributions made in 2006 and 2007.

 

 

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