In our December 14 post, we noted some tips from the IRS on how to properly claim tax deductions for charitable gifts. As the year draws to a close, and people make their last gifts to charity for 2012, there are a few more such tips worth noting.
In the media, the holiday season has become more associated with buying than giving or receiving. Black Friday starts earlier every year, with plenty of press coverage documenting each successive jumpstart.
Today has been designated as "Giving Tuesday." It's a new entry in the holiday gift-giving season, aimed at encouraging people to give generously to nonprofit organizations of their choice.
The year is not over and it is not too late to make some shrewd moves to save on your yearly tax bill. In our last post we discussed the importance of proper tax planning for high income individuals and the fact that some deductions may trigger an IRS audit. We also discussed three tax saving tips that the IRS recently issued including donating to charity, installing green-energy appliances, and making changes to an investment portfolio.
Although tax considerations are not the primary reason why most Californians donate to charity, the charitable deduction is heavily relied on by some individuals and businesses to plan how to dispose of unwanted property. Many Orange County taxpayers are dismayed when their charitable deductions are disallowed by the IRS due to a lack of documentation. The frequency of these disallowances makes it important for California taxpayers to remember to "get the letter."
Orange County tax attorneys will almost always recommend making charitable donations and deducting them from your taxes. But like everything else with taxes, there are right ways and wrong ways to do it. Avoid problems with the IRS by following their advice on what to know before deducting charitable donations on your 2010 taxes.