November
2002 On-line Tax Planning
Charitable
Give-and-Take
When you contribute to charity and receive something in return, you may
have to reduce your tax deduction for the contribution by the value of the goods
or services you receive. For example, suppose you pay $100 to attend a
charity fundraising dinner. The full $100 is not tax deductible - you must
subtract the value of the dinner. If your payment to a charity exceeds
$75, the charity should give you an estimate of the value of any goods or
services provided in connection with your donation.
Certain benefits are considered
"insubstantial" and don't have to be valued for tax deduction
purposes. These include (2002 figures):
 | Token benefits worth no more than $79 or 2%
of your payment, whichever is less; |
| Low-cost articles (worth $7.90 or less) that
bear the organization's name or logo if provided to you in connection with
your payment of $39.50 or more; |
| Annual membership benefits consisting of
recurring rights or privileges that are provided to you in exchange for your
annual payment to the organization of $75 or less; and, |
| Intangible religious benefits. |
Please give us a call, at your convenience, for
more information.
Tax
Planning Archives
For More Information Contact:
Bucheri McCarty & Metz LLP
2366 W. Boulevard
P.O. Box 2147
Kokomo, IN 46904-2147
Telephone: (765) 236-2300
FAX: (765) 236-2333
Internet:
info@bmmcpas.com
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