Comments on: On new rules for writing off charitable gifts

By: Mike

Mike — Fri, 08 Sep 2006 19:01:05 +0000

The prior rules on cash donations required a writing from the donee if it $250 or more per donation. Cash donations below that amount could be substantiated by a check or by a contemporaneous writing by the donor. In other words, if I put $20 cash in the offering plate at church, I could make a contemporaneous record and write off the $20. As of 1/1/07, I can no longer do that. Church ushers and Salvation Army bell ringers will apparently be required to carry receipt books so that parishioners/donors can get a receipt at that time. I don’t see that happening which means that a lot of legitimate church and other cash donations will not get deducted, resulting in a windfall for the treasury and an increased reluctance to give to worthy causes.

By: Kay Bell

Kay Bell — Mon, 04 Sep 2006 07:21:42 +0000

This is in response to Donna’s question above.
The new tax rules regarding “good” quality clothing/household item donations took effect when the bill was signed into law by the president on Aug. 17. So everything donated on or after that date is subject to the new guidelines.

By: fivecentnickel.com

fivecentnickel.com — Fri, 01 Sep 2006 17:45:53 +0000

Weekly Roundup – 09/01/06…

Jim talks about which closing costs are negotiable. Definitely worth the read if you’re in the market for mortgage. The only thing that Jim doesn’t provide in his writeup is the backbone necessary to stand up to the lender and make them low…

By: Free Money Finance

Free Money Finance — Fri, 01 Sep 2006 10:21:23 +0000

Star Money Articles for the Week of August 28…

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Five Cent Nickel asks how much life insurance do you need? Blueprint for Financial Prosperity lists which closing costs are negotiable. Consumerism Commentary g…

By: Donna

Donna — Thu, 31 Aug 2006 02:20:12 +0000

Does anybody know when the new rules go into affect? I personally just loaded up a ton of stuff (1st cleanout in 10 years) and we decided to give it away rather than hold a garage sale (crunched the numbers and the tax break was greater than the likely gains on a garage sale — and, giving to charity feels better than pocketing those few dollars). In any event, we felt fairly safe with the $5,000 floor — nothing we are giving is worth that much, but, I have so many books that I am donating and those are worth $5.00 – $10.00 per book. If I have 100 books (which I do) that’s over $500.00. I’m planning on getting a receipt but how can I get an appraisal without spending money. My other option is to give them $500.00 worth of each kind of thing this year and the next $500.00 next year and so on until it’s all gone. But I really want it out of the house. So, if the rules have a few weeks until they take effect or only apply to the 2007 tax year on, I’m good because I’ll get rid of all of it now.

It surprises me that others don’t normally take “goods” donations. I’ve only given goods and gotten a receipt once before, but the rules, until now, have been relatively generous — over $5,000.00 of same kind items needed an appraisal. It would seem that a lot of people, given such a high amount, would find it more financially worthwhile to donate goods than to sell them or just throw them out.

By: AmDollar

AmDollar — Wed, 30 Aug 2006 20:31:47 +0000

For my $250 deduction to Samaritan House, I have to write out EXACTLY what is given and they always ask if everything is good/great condition. This year they were more stingy than ever, saying that computers and monitors had to be less than 3 years old. Interesting post however doesnt affect me.

By: bluntmoney

bluntmoney — Wed, 30 Aug 2006 00:22:41 +0000

I don’t think it’ll affect me, because I always get receipts anyway. It’s awfully hard anyway to figure out how much goods like clothes are worth, so maybe they’re trying to cut down on people over-valuing those.

By: FMF

FMF — Tue, 29 Aug 2006 20:13:45 +0000

Just to clarify, the rules won’t change my cash gifts (which is the majority). It just makes it a hassle if you’re giving away any physical goods — like an almost new bed we just gave away.

That said, there’s a comment that maybe the charity itself qualifies as an appraisal expert. If that’s the case, there’s little impact to me if any. I just need to sort out the details.

By: frugal

frugal — Tue, 29 Aug 2006 19:56:40 +0000

The new rules don’t affect me either. I always have receipts for cash donation. As for goods, I try to document as much as I can, but I never take a deduction of more than $250 in a year, which I think is the limit before some serious documentation is required.
I always figure, even saving one hundred dollar on my tax from goods donation, does not worth the trouble of a potential IRS audit.