What does that mean? Your taxes are lowered if you donate??? Donate what: clothes or just anything?? Where would you have to donate? Can you do this in New York?
2007-09-23 11:15:56 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If you make a donation, cash or otherwise, to a registered charity, you can deduct it on your income tax return as a charitable contribution. There are a number of rules about the items and what documentation you must have. If it's items other than cash you are donating, your deduction is at most the current fair market value of the item, not what you paid for it.
You can only deduct charitable contributions if you itemize, not if you take the standard deduction. The deduction can save you up to the amount of the deduction times your tax bracket off your taxes. So if you donate $1000 to an eligible organization and you are in a 15% tax bracket, you'd save up to $150 in taxes.
You can do this anyplace in the US.
2007-09-23 11:33:09 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
http://www.charityboats.org/ accepts boat donations anywhere in the US
2014-04-22 18:49:02 · answer #2 · answered by Julianne 1 · 0⤊ 0⤋
It means that you dont have to pay tax on the value of the item. For instance: Say you make 40 grand this year. You have to pay tax on the whole 40 grand. But, if you donate items that are worth 5 grand, then you only have to pay tax on 35 grand. The value of the items that you donated can be deducted from the total amount that you have to pay taxes on for the year.
Now, you have to get reciept from the charity that you donated the item to, and you have to be able to prove to the IRS how much the item was worth. You cant donate a 1974 Pinto, and then claim on your taxes that it was worth 5 grand. You have to have some proof of how much it was worth. Of course, if you have donated cash, then you can simply deduct the amount you donated from your taxable income. But you will need all your paperwork to prove you have actually donated what you are claiming.
2007-09-23 18:28:24 · answer #3 · answered by Andrew 5 · 0⤊ 0⤋
Donations are tax deductible on Federal and State tax returns. However you only get this deduction if you itemize your deductions. If you are filing a short form, you don't get to do that. And yes, it is monetary donations as well as clothing.
2007-09-23 18:27:16 · answer #4 · answered by Angie 6 · 0⤊ 0⤋
It is only deductible if you do not take the standard deduction. However, a deduction for charity is based on a percentage OVER your adjusted gross income, so sometimes it would not qualify even if your were itemizing deductions.
2007-09-23 19:24:52 · answer #5 · answered by Kat 2 · 0⤊ 0⤋