When making non-cash donations, the IRS requires specific documentation based on the contribution amount. Donations under $250 need a receipt with the organization’s details, while gifts between $250 and $500 require a written acknowledgment with a description and condition of the item. For contributions over $5,000, a formal appraisal is mandatory. Following these guidelines can help ensure compliance and maximize tax deductions. Need more guidance? Contact Dr. Friday’s team for assistance!
Transcript: G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
The IRS is saying, “Non cash contributions less than $250, a receipt from the organization showing the organization’s name, date, location of contribution, and description of property is fine.” Between $250 and $500, you have to have correspondence written, now acknowledgment, of the contribution to the organization that includes the description of the property, the service, the date, the description of if it was in good shape, if it was an estimated value, how they came to it. Anything over $5,000, you need an appraisal. So make sure if you’re giving, you have the right documentation. Call us at 367-0819.
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