Sunday, March 2, 2008

Changes to the 2007 Charitable Contributions

According to the IRS, there are three new points that are to be made in compliance with the IRS standards in regards to your 2007 federal taxes:

New record keeping requirements for cash contributions-
You cannot deduct a cash contributions, regardless of the amount unless you keep bank records i.e cancelled checks, or the name of a charity including the date and the amount.

Contributions to a donor-
After February 13,2007, you cannot deduct a contribution to a donor , if the sponsoring organization is a war veterans organization, a fraternity society, or a nonprofit cemetery company. Generally a person that is donating a certain amount can have a say in how the money should be distributed or how it should be invested. When adhering to this new law, donor's will no longer have a say in these matters.

Filling fee for assessments on buildings in historic districts-
According the Internal Revenue Service, after February 12, 2007, a new $500 filing fee must be paid for each qualified conservation contribution that is an easement on a building in a registered historic district (if the claim deduction is more than $10,000).

If you need require additional assistance on filing your returns, please contact a licensed tax prep to assist you in being in compliance with these updated regulations.

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