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contributions or gifts made to qualifying organizations.
See sec. 170(a). Subject to various exceptions, if property
other than money is donated, then “the amount of the contribution
is the fair market value of the property at the time of the
contribution”. Sec. 1.170A-1(c)(1), Income Tax Regs. The term
“fair market value” is defined as “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 reasonable knowledge of relevant facts.” Sec.
1.170A-1(c)(2), Income Tax Regs.
A charitable contribution deduction, whether made by cash or
otherwise, must be substantiated by at least one of the
following: (1) A canceled check; (2) a receipt from the donee
charitable organization showing the name of the donee, the date
of the contribution, and the amount of the contribution;11 or (3)
in the absence of a canceled check or receipt from the donee
charitable organization, other reliable written records showing
the name of the donee, the date of contribution, and the amount
of the contribution. Sec. 1.170A-13(a)(1), Income Tax Regs. The
reliability of the records is determined on the basis of all of
11 A letter or other communication from the donee charitable
organization acknowledging receipt of the contribution and
showing the date and amount of the contribution constitutes a
“receipt”.
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Last modified: May 25, 2011