October 15, 2007
Using the Internet for your Charitable Tax Questions
You can easily find the answer to most of your charitable tax questions online using a variety of sources. While the IRS website is the most comprehensive, it is not the only one you can turn to; however you can find a wealth of information there. For example, two publications you'll find on the IRS site that will answer many of your charitable tax questions are Publications 526 and 561.
Publication 526, Charitable Contributions, defines what charitable contributions are, and which ones are tax deductible and which ones are not. It is easy to read and gives plenty of examples. It's a good idea to check each year's publication even if you are well versed in deducting your charitable contributions because of the constant changes in the various tax laws.
Publication 561, Determining the Value of Donated Property, is a valuable resource you may find yourself referring to again and again. It addresses all types of donated property from household goods and clothes to cars and property. While we would like to claim the amount we paid for a donated item ten years ago, the IRS frowns on this practice and imposes stiff penalties for those who over-inflate the value of donated items. A quick read of this publication, though, and you'll be an expert at determining the value of anything you donate.
There are other online sources you can turn to as well for your charitable tax questions. Many sites that offer financial planning and investment advice have information regarding taxes and charitable giving as well. You'll find a lot of useful information at MSNMoney, such as up-to-date tax laws and advice on the subject of charitable giving. While the IRS website is limited to the legal aspect as far as deductions are concerned, other sites offer different kinds of information on the subject as well as an abbreviated version of the tax laws.
For example, on the above-mentioned site, you'll find information about other perks of contributing to charitable organizations, such as beefing up your resume or learning a new skill. The Internet has a wealth of information to offer regarding charitable contributions, including answers to most, if not all, tax questions.
The University of New Mexico Foundation offers free online access to GiftLaw Pro, which is a comprehensive database that addresses all aspects of charitable contributions, from planned giving for beginners to the most basic of tax questions and the most complex of tax questions regarding charitable contributions. GiftLaw Pro is contained in a user-friendly website that offers tools and calculators along with links and comprehensive information on all aspects of charitable giving.
You'll also find websites of those in business to help those who need professional help to make the most of their charitable contributions. For those who have a large amount of money to contribute, they need to make sure they do so in a manner that, while helping others, offers the least amount of financial burden at tax time. You'll find experienced professionals who can best advise you as to the tax implications of your charitable gifts.
As with any endeavor, unfortunately, it's prudent to watch out for scams and scam artists. Steer clear from anyone who offers to inflate the value of your charitable contributions because this can only spell trouble for you when Uncle Sam gets wind of it. All in all, though, the web is a plethora of information regarding charitable contributions and the tax implications that go along with them. You'll find interesting tidbits along the way, such as the fact that you can deduct a charitable contribution for the year in which you charged it on your credit card, even if you didn't actually pay for it until the following year.
Just plug "Charitable Tax Questions" into your favorite search engine and you'll be rewarded with all the information you need to answer your tax questions.









































