On July 30th 2018 the IRS issued final regulations relating to the substantiation and reporting requirements for charitable contributions which address substantiation requirements for contributions of more than $500 and of clothing and household items.
In order to substantiate a charitable contribution the following substantiation requirements must be met:
Cash Contributions
Under $250
- Bank record or written communication from the charity
- Blank pledge cards provided by the donee organization are not sufficient substantiation
$250 or more
- Obtain contemporaneous written acknowledgement from the donee organization
Non-cash Contributions
Donated property must be in good condition or better.
Under $250
- Obtain a receipt or keep reliable records
- Reliable records must show the following information:
- Name and address of the donee
- Date of the contribution
- Description of the property in sufficient detail including the condition
- Fair market value on the date of contribution
- Method used to determine fair market value
- Reliable records must show the following information:
$250 – $500
- Obtain contemporaneous written acknowledgement from the donee organization
$500 or more
- Obtain contemporaneous written acknowledgement and file a completed form 8283
$5,000 or more
- Obtain contemporaneous written acknowledgement, file a completed form 8283, and obtain a qualified appraisal
- Exception to appraisal requirements for contribution of publicly traded securities
$500,000 or more
- Same as $5,000 but appraisal must be attached to the taxpayers tax return
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