Post a new topic
    6 Replies Latest reply on Nov 27, 2007 9:56 PM by kylooks

    Donation needs an actual purchase  receipt??

    kylooks Newbie
      Is it true that for everything that we donated in 2007 have to have an actual purchase receipt in order to do a tax write off?
        • Re: Donation needs an actual purchase  receipt??
          Lighthouse24 Ranger
          If you plan to take any type of tax deduction (business or personal) for a charitable contribution or donation, you'll need to have some kind of documentation to support it. If you need a more specific answer than that, please provide more details about the donation and "write off" you have in mind. Best wishes!
          • Re: Donation needs an actual purchase  receipt??
            CorpCons08 Ranger
            Any form of donation of charitable contribution requires a receipt for tax purposes. There may be a limit in which you don't, but be safe and have a receipt printed up.
            • Re: Donation needs an actual purchase  receipt??
              Ed O'Gee Adventurer
              Any donation under $250 does not require a receipt for filing purposes. But in the event of an audit you want to have that handy.
              • Re: Donation needs an actual purchase  receipt??
                Lighthouse24 Ranger

                In my initial post, I was trying to provide a general answer to your general question, rather than a specific answer to a question you may not have even been asking. To (hopefully) clarify things:


                The "under $250" limit applies to cash donations made to a listed charity. Your cancelled check is proof enough if the amount of the donation is less than $250, but you need a separate written confirmation from the organization (even your church) if your donation is more than that.


                For non-cash donations (like drop-offs at Goodwill), the old rule was that you had to have at least a written log (similar to the vehicle mileage log you keep to claim business use of a vehicle) that showed the organization, date, and donation made. Like a vehicle log, you didn't submit this with your tax return, but you had to check a box indicating that you had written documentation to support the claim. In general, it was easier to just get a receipt from Goodwill than to keep a log.


                The new rule (effective 2007, which is what you asked about) is that a log is no longer sufficient. You must have a receipt from the organization for any non-cash donation in any amount. Further, if the TOTAL of all non-cash donations you claim exceeds $500, you have to file Form 8283 which includes all that info you used to have to keep in a log, plus a description of how you reached the "fair market value" you are claiming for each donated item. With the 2007 change, Congress gave the IRS the power to "deny deductions for items with minimal market value" (in other words, you're advised not to claim than an item was worth any more than you can prove it would have sold for). Also, if you claim that the fair market value of any single item is over $500, you must submit a qualified appraisal (there are some exceptions for donations like cars, boats, and art collections).


                All of this pertains to personal donations and taxes, not donations you may be making as a business or corporation (which in the context of this forum, may have been what you were asking about to begin with). So again, if we haven't answered your question, pease feel free to add more specifics about your situation. Clearly, several of us are eager to help!