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Charitable contributions a taxpayer makes are generally
deductible under section 170(a). No deduction is allowed,
however, for any contribution of $250 or more unless the taxpayer
substantiates the contribution by a contemporaneous written
acknowledgment of the contribution by a qualified donee
organization.7 Sec. 170(f)(8)(A). The deduction for a
contribution of property equals the fair market value of the
property on the date contributed. Sec. 1.170A-1(c)(1), Income
Tax Regs. The fair market value of property is the price at
which the property would change hands between a willing buyer and
a willing seller, neither being under any compulsion to buy or
sell and both having a reasonable knowledge of relevant facts.
Sec. 1.170A-1(c)(2), Income Tax Regs.
A taxpayer claiming a charitable contribution is generally
required to maintain for each contribution a canceled check, a
receipt from the donee charitable organization showing the name
of the organization and the date and amount of the contribution,
or other reliable written records showing the name of the donee
7There are now stricter requirements for contributions of
money. Sec. 170(f)(17). No deduction for a contribution of
money in any amount is allowed unless the donor maintains a bank
record or written communication from the donee showing the name
of the donee organization, the date of the contribution, and the
amount of the contribution. Id. This new provision is effective
for contributions made in tax years beginning after Aug. 17,
2006. Pension Protection Act of 2006, Pub. L. 109-280, sec.
1217, 120 Stat. 1080.
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Last modified: November 10, 2007