- 9 - 3. Charitable Contributions Section 170(a) allows as a deduction a charitable contribution which is made within the taxable year. As relevant here, a charitable contribution means a contribution or gift to or for the use of an organization organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes. Sec. 170(c)(2)(B). If a taxpayer makes a charitable contribution of money the taxpayer shall maintain for each contribution either a cancelled check, a receipt or letter from the donee charitable organization, or other reliable written records showing the name of the donee, the date of the contribution, and the amount of the contribution. Cavalaris v. Commissioner, T.C. Memo. 1996-308; sec. 1.170A-13(a)(1), Income Tax Regs. The reliability of a written record is to be determined on the basis of all the facts and circumstances of a particular case. Sec. 1.170A-13(a)(2)(i), Income Tax Regs. Factors indicating that a written record is reliable include the contemporaneous nature of the writing and the regularity of the taxpayer’s recordkeeping procedure. Sec. 1.170A-13(a)(2)(i)(A) and (B), Income Tax Regs. If the contribution is made in property other than money, the amount of the contribution is generally the fair market value of the property at the time of the contribution. Sec. 1.170A- 1(c)(1), Income Tax Regs. The taxpayer must also maintain aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011