Court Rulings Regarding Charitable Contributions—
Tax Court Denies Deduction for a Member’s Contributions to His Church A tax court denied a church member’s charitable contribution deductions to his church for lack of substantial information. The church member claimed that his bank savings account register was proof that he made charitable contributions because it showed these withdrawals. The court denied these…
How to Write a Church Donor Acknowledgement Letter
The IRS sets out that acknowledgments must be provided “in writing, at the time of solicitation or when the payment is received, and in a way that will come to the attention of the donor,” according to IRS Publication 1771. For the letter to be considered “contemporaneous” with the contribution, “a donor must receive the acknowledgment by…
How to Value Noncash Charitable Contributions
If you donate property to a nonprofit such as clothing, electronics, books, or furniture, you need to determine how much it is worth when you donate it. The basic rule is that you may deduct no more than the property’s “fair market value” at the time of the donation. But fair market value can be…
Is Volunteer Work Still Tax Deductible?
The IRS will not allow individuals to deduct the monetary value of their volunteer service to a nonprofit on their individual income tax returns. But volunteers may be able to deduct for certain volunteer expenses. Your donation will be deductible only if it is made to a qualified nonprofit, tax-exempt organization. That is, the IRS must have granted 501(c)(3) tax-exempt…
How to Deduct Ministry Mileage in 2017
With the mileage deduction, the IRS only lets you deduct trips that are ministry-related. The natural question is: what types of trips are considered ministry mileage? Here are a few examples of approved mileage by the IRS: Travel between churches You can take the mileage deduction for travel from church A to church B. Errands/supplies Driving…
Are Home Equity Loans Still Deductible Under New Law
The new federal tax law created a lot of confusion over whether taxpayers were still able to deduct the interest they pay on their home equity loans and home equity lines of credit. If you’re planning to redo a bathroom or a kitchen or fix up a fixer-upper, the interest on new home equity loans,…
Giving Strategies to Charity Under New Tax Law
Changes to the tax law in 2018 have taken away most people’s ability to deduct charitable contributions. But there are still a few options to consider in order to give and still receive. Fortunately, there are options for donors who would like to obtain a tax benefit for their generosity. One permits anyone 70½ or…
5 Things About Deducting Charitable Contributions in 2017
Taxpayers who give money or goods to a charity may be able to claim a deduction on their 2017 federal tax return, which basically reduces the amount of their taxable income. Here are some important facts about charitable donations: Qualified charities. To receive a deduction, taxpayers must donate to a qualified charity. To check the…
Do Ministry Meals Remain Deductible?
Dues versus Contributions
Ministers often pay a small annual renewal fee to maintain their credentials, which constitutes a deductible expense. However, ministers’ contributions to the church are not deductible as business expenses. Many may argue that they are expected to donate generously to the church as part of their employment. This is not sufficient to convert charitable contributions…
