Cash Donations to Charity Now Require a Receipt

Brittany Oates, Estate Planning Attorney

Starting this year, you can’t take an income tax deduction for cash gifts to charity unless you have a written receipt from the charity or a bank record, regardless of the size of the gift.  In the past, you didn’t need a receipt to deduct small cash gifts to charity or most recurring gifts such as weekly church contributions.

Also starting this year, you can no longer deduct charitable gifts of used clothing or household items unless they are in “good” condition. This is problematic because the new law doesn’t specify what exactly “good” condition means.  Even if household items aren’t in good condition, the law says you can still deduct them if you provide an appraisal showing the gift is worth more than $500.

© Centara Legal Group, APC, 2007. All rights reserved.

Centara Legal Group, APC
8880 Rio San Diego Drive, Suite 450
San Diego, CA 92108
(619) 400-1900
www.centaralegal.com
info@centaralegal.com