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Amend my taxes 3. Amend my taxes   Claiming the Special Depreciation Allowance Table of Contents Introduction What Is Qualified Property?Qualified Reuse and Recycling Property Qualified Cellulosic Biofuel Plant Property Qualified Disaster Assistance Property Certain Qualified Property Acquired After December 31, 2007 Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance How Much Can You Deduct? How Can You Elect Not To Claim an Allowance? When Must You Recapture an Allowance? Introduction You can take a special depreciation allowance to recover part of the cost of qualified property (defined next), placed in service during the tax year. Amend my taxes The allowance applies only for the first year you place the property in service. Amend my taxes For qualified property placed in service in 2013, you can take an additional 50% special allowance. Amend my taxes The allowance is an additional deduction you can take after any section 179 deduction and before you figure regular depreciation under MACRS for the year you place the property in service. Amend my taxes This chapter explains what is qualified property. Amend my taxes It also includes rules regarding how to figure an allowance, how to elect not to claim an allowance, and when you must recapture an allowance. Amend my taxes Corporations can elect to accelerate certain minimum tax credits in lieu of claiming the special depreciation allowance for eligible qualified property. Amend my taxes See Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance , later. Amend my taxes See chapter 6 for information about getting publications and forms. Amend my taxes What Is Qualified Property? Your property is qualified property if it is one of the following. Amend my taxes Qualified reuse and recycling property. Amend my taxes Qualified cellulosic biofuel plant property. Amend my taxes Qualified disaster assistance property. Amend my taxes Certain qualified property acquired after December 31, 2007. Amend my taxes The following discussions provide information about the types of qualified property listed above for which you can take the special depreciation allowance. Amend my taxes Qualified Reuse and Recycling Property You can take a 50% special depreciation allowance for qualified reuse and recycling property. Amend my taxes Qualified reuse and recycling property is any machinery or equipment (not including buildings or real estate), along with any appurtenance, that is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials (as defined in section 168(m)(3)(B) of the Internal Revenue Code). Amend my taxes Qualified reuse and recycling property also includes software necessary to operate such equipment. Amend my taxes The property must meet the following requirements. Amend my taxes The property must be depreciated under MACRS. Amend my taxes The property must have a useful life of at least 5 years. Amend my taxes The original use of the property must begin with you after August 31, 2008. Amend my taxes You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after August 31, 2008, with no binding written contract for the acquisition in effect before September 1, 2008. Amend my taxes The property must be placed in service for use in your trade or business after August 31, 2008. Amend my taxes Excepted Property Qualified reuse and recycling property does not include any of the following. Amend my taxes Any rolling stock or other equipment used to transport reuse or recyclable materials. Amend my taxes Property required to be depreciated using the Alternative Depreciation System (ADS). Amend my taxes For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Amend my taxes Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Amend my taxes Property for which you elected not to claim any special depreciation allowance (discussed later). Amend my taxes Property placed in service and disposed of in the same tax year. Amend my taxes Property converted from business use to personal use in the same tax year acquired. Amend my taxes Property converted from personal use to business use in the same or later tax year may be qualified reuse and recycling property. Amend my taxes Qualified Cellulosic Biofuel Plant Property You can take a 50% special depreciation allowance for qualified cellulosic biofuel plant property. Amend my taxes Cellulosic biofuel is any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. Amend my taxes Examples include bagasse (from sugar cane), corn stalks, and switchgrass. Amend my taxes The property must meet the following requirements. Amend my taxes The property is used in the United States solely to produce cellulosic biofuel. Amend my taxes The original use of the property must begin with you after December 20, 2006. Amend my taxes You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) after December 20, 2006, with no binding written contract for acquisition in effect before December 21, 2006. Amend my taxes The property must be placed in service for use in your trade or business or for the production of income after October 3, 2008, and before January 3, 2013. Amend my taxes Note. Amend my taxes For property placed in service after January 2, 2013, and before January 1, 2014, you can take a 50% special depreciation allowance for qualified second generation biofuel plant property that is used solely in the United States to produce second generation biofuel (as defined in section 40(b)(6)(E)). Amend my taxes The other requirements for qualified second generation biofuel plant property to be eligible for the special depreciation allowance are identical to the requirements discussed for Qualified Cellulosic Biofuel Plant Property above. Amend my taxes Special Rules Sale-leaseback. Amend my taxes   If you sold qualified cellulosic biofuel plant property you placed in service after October 3, 2008, and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Amend my taxes   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before December 21, 2006. Amend my taxes Syndicated leasing transactions. Amend my taxes   If qualified cellulosic biofuel plant property is originally placed in service by a lessor after October 3, 2008, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Amend my taxes   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. Amend my taxes Excepted Property Qualified cellulosic biofuel plant property does not include any of the following. Amend my taxes Property placed in service and disposed of in the same tax year. Amend my taxes Property converted from business use to personal use in the same tax year it is acquired. Amend my taxes Property converted from personal use to business use in the same or later tax year may be qualified cellulosic biomass ethanol plant property. Amend my taxes Property required to be depreciated using the Alternative Depreciation System (ADS). Amend my taxes For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Amend my taxes Property any portion of which is financed with the proceeds of any obligation the interest on which is exempt from tax under section 103 of the Internal Revenue Code. Amend my taxes Property for which you elected not to claim any special depreciation allowance (discussed later). Amend my taxes Property for which a deduction was taken under section 179C for certain qualified refinery property. Amend my taxes Other bonus depreciation property to which section 168(k) of the Internal Revenue Code applies. Amend my taxes Qualified Disaster Assistance Property You can take a 50% special depreciation allowance for qualified disaster assistance property placed in service in federally declared disaster areas in which the disaster occurred in 2009. Amend my taxes A list of the federally declared disaster areas is available at the FEMA website at www. Amend my taxes fema. Amend my taxes gov. Amend my taxes Your property is qualified disaster assistance property if it meets the following requirements. Amend my taxes The property is nonresidential real property or residential real property placed in service before January 1, 2014, in a federally declared disaster area in which the disaster occurred in 2009. Amend my taxes You must have acquired the property by purchase (as discussed under Property Acquired by Purchase in chapter 2 ) on or after the applicable disaster date, with no binding written contract for the acquisition in effect before the applicable disaster date. Amend my taxes The property must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the applicable federally declared disaster. Amend my taxes The property must be similar in nature to, and located in the same county as, the rehabilitated or replaced property. Amend my taxes The original use of the property within the applicable disaster area must have begun with you on or after the applicable disaster date. Amend my taxes The property is placed in service by you on or before the date which is the last day of the fourth calendar year. Amend my taxes Substantially all (80% or more) of the use of the property must be in the active conduct of your trade or business in a federally declared disaster area, occurring in 2009. Amend my taxes It is not excepted property (explained later in Excepted Property ). Amend my taxes Special Rules Sale-leaseback. Amend my taxes   If you sold qualified disaster assistance property you placed in service after the applicable disaster date and leased it back within 3 months after you originally placed it in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Amend my taxes   The property will not qualify for the special allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before the applicable disaster date. Amend my taxes Syndicated leasing transactions. Amend my taxes   If qualified disaster assistance property is originally placed in service by a lessor after the applicable disaster date, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Amend my taxes   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of sale if the property is sold within 3 months after the final unit is placed in service and the period between the times the first and last units are placed in service does not exceed 12 months. Amend my taxes Excepted Property Qualified disaster assistance property does not include any of the following. Amend my taxes Property required to be depreciated using the Alternative Depreciation System (ADS). Amend my taxes For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Amend my taxes Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103 of the Internal Revenue Code. Amend my taxes Any qualified revitalization building (defined later) placed in service before January 1, 2010, for which you have elected to claim a commercial revitalization deduction for qualified revitalization expenditures. Amend my taxes Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Amend my taxes Any property for which the special allowance under section 168(k) or section 1400N(d) of the Internal Revenue Code applies. Amend my taxes Property for which you elected not to claim any special depreciation allowance (discussed later). Amend my taxes Property placed in service and disposed of in the same tax year. Amend my taxes Property converted from business use to personal use in the same tax year acquired. Amend my taxes Property converted from personal use to business use in the same or later tax year may be qualified disaster assistance property. Amend my taxes Any gambling or animal racing property (defined later). Amend my taxes Qualified revitalization building. Amend my taxes   This is a commercial building and its structural components that you placed in service in a renewal community before January 1, 2010. Amend my taxes If the building is new, the original use of the building must begin with you. Amend my taxes If the building is not new, you must substantially rehabilitate the building and then place it in service. Amend my taxes For more information, including definitions of substantially rehabilitated building and qualified revitalization expenditure, see section 1400I(b) of the Internal Revenue Code. Amend my taxes Gambling or animal racing property. Amend my taxes   Gambling or animal racing property includes the following personal and real property. Amend my taxes Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing. Amend my taxes Any real property determined by square footage (other than any portion that is less than 100 square feet) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing. Amend my taxes Certain Qualified Property Acquired After December 31, 2007 You can take a 50% special depreciation deduction allowance for certain qualified property acquired after December 31, 2007. Amend my taxes Your property is qualified property if it meets the following requirements. Amend my taxes It is one of the following types of property. Amend my taxes Tangible property depreciated under MACRS with a recovery period of 20 years or less. Amend my taxes Water utility property. Amend my taxes Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Amend my taxes (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Amend my taxes ) Qualified leasehold improvement property (defined under Qualified leasehold improvement property later). Amend my taxes You must have acquired the property after December 31, 2007, with no binding written contract for the acquisition in effect before January 1, 2008. Amend my taxes The property must be placed in service for use in your trade or business or for the production of income before January 1, 2014 (before January 1, 2015, for certain property with a long production period and certain aircraft (defined next)). Amend my taxes The original use of the property must begin with you after December 31, 2007. Amend my taxes It is not excepted property (explained later in Excepted property). Amend my taxes Qualified leasehold improvement property. Amend my taxes    Generally, this is any improvement to an interior part of a building that is nonresidential real property, if all the following requirements are met. Amend my taxes The improvement is made under or according to a lease by the lessee (or any sublessee) or the lessor of that part of the building. Amend my taxes That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Amend my taxes The improvement is placed in service more than 3 years after the date the building was first placed in service by any person. Amend my taxes The improvement is section 1250 property. Amend my taxes See chapter 3 in Publication 544, Sales and Other Dispositions of Assets, for the definition of section 1250 property. Amend my taxes   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Amend my taxes The enlargement of the building. Amend my taxes Any elevator or escalator. Amend my taxes Any structural component benefiting a common area. Amend my taxes The internal structural framework of the building. Amend my taxes   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. Amend my taxes However, a lease between related persons is not treated as a lease. Amend my taxes Related persons. Amend my taxes   For this purpose, the following are related persons. Amend my taxes Members of an affiliated group. Amend my taxes An individual and a member of his or her family, including only a spouse, child, parent, brother, sister, half-brother, half-sister, ancestor, and lineal descendant. Amend my taxes A corporation and an individual who directly or indirectly owns 80% or more of the value of the outstanding stock of that corporation. Amend my taxes Two corporations that are members of the same controlled group. Amend my taxes A trust fiduciary and a corporation if 80% or more of the value of the outstanding stock is directly or indirectly owned by or for the trust or grantor of the trust. Amend my taxes The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Amend my taxes The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. Amend my taxes A tax-exempt educational or charitable organization and any person (or, if that person is an individual, a member of that person's family) who directly or indirectly controls the organization. Amend my taxes Two S corporations, and an S corporation and a regular corporation, if the same persons own 80% or more of the value of the outstanding stock of each corporation. Amend my taxes A corporation and a partnership if the same persons own both of the following. Amend my taxes 80% or more of the value of the outstanding stock of the corporation. Amend my taxes 80% or more of the capital or profits interest in the partnership. Amend my taxes The executor and beneficiary of any estate. Amend my taxes Long Production Period Property To be qualified property, long production period property must meet the following requirements. Amend my taxes It must meet the requirements in (2)-(5), above. Amend my taxes The property has a recovery period of at least 10 years or is transportation property. Amend my taxes Transportation property is tangible personal property used in the trade or business of transporting persons or property. Amend my taxes The property is subject to section 263A of the Internal Revenue Code. Amend my taxes The property has an estimated production period exceeding 1 year and an estimated production cost exceeding $1,000,000. Amend my taxes Noncommercial Aircraft To be qualified property, noncommercial aircraft must meet the following requirements. Amend my taxes It must meet the requirements in (2)-(5), above. Amend my taxes The aircraft must not be tangible personal property used in the trade or business of transporting persons or property (except for agricultural or firefighting purposes). Amend my taxes The aircraft must be purchased (as discussed under Property Acquired by Purchase in chapter 2 ) by a purchaser who at the time of the contract for purchase, makes a nonrefundable deposit of the lesser of 10% of the cost or $100,000. Amend my taxes The aircraft must have an estimated production period exceeding four months and a cost exceeding $200,000. Amend my taxes Special Rules Sale-leaseback. Amend my taxes   If you sold qualified property you placed in service after December 31, 2007, and leased it back within 3 months after you originally placed in service, the property is treated as originally placed in service no earlier than the date it is used by you under the leaseback. Amend my taxes   The property will not qualify for the special depreciation allowance if the lessee or a related person to the lessee or lessor had a written binding contract in effect for the acquisition of the property before January 1, 2008. Amend my taxes Syndicated leasing transactions. Amend my taxes   If qualified property is originally placed in service by a lessor after December 31, 2007, the property is sold within 3 months of the date it was placed in service, and the user of the property does not change, then the property is treated as originally placed in service by the taxpayer no earlier than the date of the last sale. Amend my taxes   Multiple units of property subject to the same lease will be treated as originally placed in service no earlier than the date of the last sale if the property is sold within 3 months after the final unit is placed in service and the period between the time the first and last units are placed in service does not exceed 12 months. Amend my taxes Excepted Property Qualified property does not include any of the following. Amend my taxes Property placed in service and disposed of in the same tax year. Amend my taxes Property converted from business use to personal use in the same tax year acquired. Amend my taxes Property converted from personal use to business use in the same or later tax year may be qualified property. Amend my taxes Property required to be depreciated under the Alternative Depreciation System (ADS). Amend my taxes This includes listed property used 50% or less in a qualified business use. Amend my taxes For other property required to be depreciated using ADS, see Required use of ADS under Which Depreciation System (GDS or ADS) Applies , in chapter 4 . Amend my taxes Qualified restaurant property (as defined in section 168(e)(7) of the Internal Revenue Code). Amend my taxes Qualified retail improvement property (as defined in section 168(e)(8) of the Internal Revenue Code). Amend my taxes Property for which you elected not to claim any special depreciation allowance (discussed later). Amend my taxes Property for which you elected to accelerate certain credits in lieu of the special depreciation allowance (discussed next). Amend my taxes Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 2 extension property (as defined in section 168(k)(4)(I)(iv)), unless the corporation made an election not to apply the section 168(k)(4) election to round 2 extension property for its first tax year ending after December 31, 2010. Amend my taxes For 2013, round 2 extension property generally is long production period and noncommercial aircraft if acquired after March 31, 2008, and placed in service after December 31, 2012, but before January 1, 2014. Amend my taxes An election made by a corporation to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, continues to apply to round 3 extension property (as defined in section 168(k)(4)(J)(iv)), unless the corporation makes an election not to apply the section 168(k)(4) election to round 3 extension property. Amend my taxes If a corporation did not make a section 168(k)(4) election for either its first tax year ending after March 31, 2008, its first tax year ending after December 31, 2008, or its first tax year ending after December 31, 2010, the corporation may elect for its first tax year ending after December 31, 2012, to claim pre-2006 unused minimum tax credits in lieu of claiming the special depreciation allowance for only round 3 extension property. Amend my taxes If you make an election to accelerate these credits in lieu of claiming the special depreciation allowance for eligible property, you must not take the 50% special depreciation allowance for the property and must depreciate the basis in the property under MACRS using the straight line method. Amend my taxes See Which Depreciation Method Applies in chapter 4 . Amend my taxes Once made, the election cannot be revoked without IRS consent. Amend my taxes Additional guidance. Amend my taxes   For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. Amend my taxes Proc. Amend my taxes 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www. Amend my taxes irs. Amend my taxes gov/pub/irs-irbs/irb08-44. Amend my taxes pdf, Rev. Amend my taxes Proc. Amend my taxes 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www. Amend my taxes irs. Amend my taxes gov/pub/irs-irbs/irb09-06. Amend my taxes pdf, and Rev. Amend my taxes Proc. Amend my taxes 2009-33 on page 150 of Internal Revenue Bulletin 2009-29, available at www. Amend my taxes irs. Amend my taxes gov/pub/irs-irbs/irb09-29. Amend my taxes pdf. Amend my taxes Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions. Amend my taxes   Additional guidance regarding the election to accelerate the minimum tax credit in lieu of claiming the special depreciation allowance for round 2 extension property and round 3 extension property may also be available in later Internal Revenue Bulletins available at www. Amend my taxes irs. Amend my taxes gov/irb. Amend my taxes How Much Can You Deduct? Figure the special depreciation allowance by multiplying the depreciable basis of qualified reuse and recycling property, qualified cellulosic biofuel plant property, qualified disaster assistance property, and certain qualified property acquired after December 31, 2007, by 50%. Amend my taxes For qualified property other than listed property, enter the special allowance on line 14 in Part II of Form 4562. Amend my taxes For qualified property that is listed property, enter the special allowance on line 25 in Part V of Form 4562. Amend my taxes If you place qualified property in service in a short tax year, you can take the full amount of a special depreciation allowance. Amend my taxes Depreciable basis. Amend my taxes   This is the property's cost or other basis multiplied by the percentage of business/investment use, reduced by the total amount of any credits and deductions allocable to the property. Amend my taxes   The following are examples of some credits and deductions that reduce depreciable basis. Amend my taxes Any section 179 deduction. Amend my taxes Any deduction for removal of barriers to the disabled and the elderly. Amend my taxes Any disabled access credit, enhanced oil recovery credit, and credit for employer-provided childcare facilities and services. Amend my taxes Basis adjustment to investment credit property under section 50(c) of the Internal Revenue Code. Amend my taxes   For additional credits and deductions that affect basis, see section 1016 of the Internal Revenue Code. Amend my taxes   For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property in chapter 1 . Amend my taxes For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1 . Amend my taxes Depreciating the remaining cost. Amend my taxes   After you figure your special depreciation allowance for your qualified property, you can use the remaining cost to figure your regular MACRS depreciation deduction (discussed in chapter 4 . Amend my taxes Therefore, you must reduce the depreciable basis of the property by the special depreciation allowance before figuring your regular MACRS depreciation deduction. Amend my taxes Example. Amend my taxes On November 1, 2013, Tom Brown bought and placed in service in his business qualified property that cost $450,000. Amend my taxes He did not elect to claim a section 179 deduction. Amend my taxes He deducts 50% of the cost ($225,000) as a special depreciation allowance for 2013. Amend my taxes He uses the remaining $225,000 of cost to figure his regular MACRS depreciation deduction for 2013 and later years. Amend my taxes Like-kind exchanges and involuntary conversions. Amend my taxes   If you acquire qualified property in a like-kind exchange or involuntary conversion, the carryover basis of the acquired property is eligible for a special depreciation allowance. Amend my taxes After you figure your special allowance, you can use the remaining carryover basis to figure your regular MACRS depreciation deduction. Amend my taxes In the year you claim the allowance (the year you place in service the property received in the exchange or dispose of involuntarily converted property), you must reduce the carryover basis of the property by the allowance before figuring your regular MACRS depreciation deduction. Amend my taxes See Figuring the Deduction for Property Acquired in a Nontaxable Exchange , in chapter 4 under How Is the Depreciation Deduction Figured . Amend my taxes The excess basis (the part of the acquired property's basis that exceeds its carryover basis) is also eligible for a special depreciation allowance. Amend my taxes How Can You Elect Not To Claim an Allowance? You can elect, for any class of property, not to deduct any special allowances for all property in such class placed in service during the tax year. Amend my taxes To make an election, attach a statement to your return indicating what election you are making and the class of property for which you are making the election. Amend my taxes When to make election. Amend my taxes   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Amend my taxes   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Amend my taxes Attach the election statement to the amended return. Amend my taxes On the amended return, write “Filed pursuant to section 301. Amend my taxes 9100-2. Amend my taxes ” Revoking an election. Amend my taxes   Once you elect not to deduct a special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Amend my taxes A request to revoke the election is a request for a letter ruling. Amend my taxes If you elect not to have any special allowance apply, the property may be subject to an alternative minimum tax adjustment for depreciation. Amend my taxes When Must You Recapture an Allowance? When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable. Amend my taxes See When Do You Recapture MACRS Depreciation in chapter 4 or more information. Amend my taxes Recapture of allowance deducted for qualified GO Zone property. Amend my taxes   If, in any year after the year you claim the special depreciation allowance for qualified GO Zone property (including specified GO Zone extension property), the property ceases to be used in the GO Zone, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Amend my taxes For additional guidance, see Notice 2008-25 on page 484 of Internal Revenue Bulletin 2008-9. Amend my taxes Qualified cellulosic biomass ethanol plant property and qualified cellulosic biofuel plant property. Amend my taxes   If, in any year after the year you claim the special depreciation allowance for any qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, the property ceases to be qualified cellulosic biomass ethanol plant property or qualified biofuel plant property, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Amend my taxes Recapture of allowance for qualified Recovery Assistance property. Amend my taxes   If, in any year after the year you claim the special depreciation allowance for qualified Recovery Assistance property, the property ceases to be used in the Kansas disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Amend my taxes For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Amend my taxes Recapture of allowance for qualified disaster assistance property. Amend my taxes   If, in any year after the year you claim the special depreciation allowance for qualified disaster assistance property, the property ceases to be used in the applicable disaster area, you may have to recapture as ordinary income the excess benefit you received from claiming the special depreciation allowance. Amend my taxes   For additional guidance, see Notice 2008-67 on page 307 of Internal Revenue Bulletin 2008-32. Amend my taxes Prev  Up  Next   Home   More Online Publications
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Hurricane Telephone Hot Lines

Phone numbers for services to help you recover from a hurricane.

Don't Know Whom to Call?

Health and Safety Hot Lines

  • Food Safety
    Call 1-888-MPHotline (1-888-674-6854) with food safety questions. Available in English and Spanish.
  • Health and Safety
    Call 1-800-CDC-INFO (1-800-232-4636), TTY 1-888-232-6348, for information on hazards, safe clean up, and preventing illness and injury. Available in English and Spanish, 24 hours a day, 7 days a week.
  • Mental Health Crisis Counseling
    Call 1-800-273-TALK (1-800-273-8255), TTY 1-800-799-4889, if you or a loved one are in emotional distress or suicidal in the aftermath of the disaster. You will be connected to a trained counselor at a suicide crisis center nearest you. Available 24 hours a day, 7 days a week. Spanish counseling available at 1-888-628-9454.
  • North Carolina Emergency Management Division
    North Carolina residents can call for updated weather information, highway closings, shelter information, and feeding sites. Available in English and Spanish 1-888-835-9966, TTY 1-877-877-1765 or 711 (Relay N.C.).
  • Report Chemical and Oil Spills
    Call 1-800-424-8802, TDD 202-267-4477 to report a chemical or oil spill to the U.S. Coast Guard.

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Survivor Assistance Hot Lines

  • American Red Cross
    Call 1-800-RED-CROSS (1-800-733-2767) for information on evacuation, shelter, and assistance.
  • Business Disaster Loans
    Call 1-800-659-2955 TTY 1-800-877-8339 for business disaster loan program information.
  • Consumer Help Line and Fraud Complaints
    Call 1-877-FTC-HELP (1-877-382-4357) to report consumer fraud to the Federal Trade Commission.
  • Employee Benefits
    If you have questions about your health or retirement benefits from your employer's plan, contact the Employee Benefits Security Administration calling toll free 1-866-444-3272 with any questions.
  • FEMA Assistance
    Call 1-800-621-FEMA (1-800-621-3362) TTY 1-800-462-7585 or register online for assistance. You can request FEMA assistance or review your previous request. Available in English and Spanish.
  • Lost Bank Records, ATM Cards, Reach Your Bank and More
    Call 1-877-ASK-FDIC (1-877-275-3342) TDD 1-800-925-4618.
  • National Flood Insurance Program
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The Amend My Taxes

Amend my taxes Publication 526 - Main Content Table of Contents Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Expenses of Whaling Captains Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions to Donor-Advised Funds Partial Interest in Property Contributions of PropertyContributions Subject to Special Rules Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value Penalty When To DeductChecks. Amend my taxes Text message. Amend my taxes Credit card. Amend my taxes Pay-by-phone account. Amend my taxes Stock certificate. Amend my taxes Promissory note. Amend my taxes Option. Amend my taxes Borrowed funds. Amend my taxes Conditional gift. Amend my taxes Limits on Deductions50% Limit 30% Limit Special 30% Limit for Capital Gain Property 20% Limit Special 50% Limit for Qualified Conservation Contributions How To Figure Your Deduction When Limits Apply Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To ReportReporting expenses for student living with you. Amend my taxes Total deduction over $500. Amend my taxes Deduction over $5,000 for one item. Amend my taxes Vehicle donations. Amend my taxes Clothing and household items not in good used condition. Amend my taxes Easement on building in historic district. Amend my taxes Deduction over $500,000. Amend my taxes How To Get Tax HelpLow Income Taxpayer Clinics Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Amend my taxes Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Amend my taxes How to check whether an organization can receive deductible charitable contributions. Amend my taxes   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Amend my taxes Or go to IRS. Amend my taxes gov. Amend my taxes Click on “Tools” and then on “Exempt Organizations Select Check” (www. Amend my taxes irs. Amend my taxes gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Amend my taxes This online tool will enable you to search for qualified organizations. Amend my taxes You can also call the IRS to find out if an organization is qualified. Amend my taxes Call 1-877-829-5500. Amend my taxes People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. Amend my taxes Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Amend my taxes gsa. Amend my taxes gov/fedrelay. Amend my taxes Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Amend my taxes A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). Amend my taxes It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Amend my taxes Certain organizations that foster national or international amateur sports competition also qualify. Amend my taxes War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Amend my taxes Domestic fraternal societies, orders, and associations operating under the lodge system. Amend my taxes (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Amend my taxes ) Certain nonprofit cemetery companies or corporations. Amend my taxes (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt. Amend my taxes ) The United States or any state, the District of Columbia, a U. Amend my taxes S. Amend my taxes possession (including Puerto Rico), a political subdivision of a state or U. Amend my taxes S. Amend my taxes possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Amend my taxes (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Amend my taxes ) Example 1. Amend my taxes You contribute cash to your city's police department to be used as a reward for information about a crime. Amend my taxes The city police department is a qualified organization, and your contribution is for a public purpose. Amend my taxes You can deduct your contribution. Amend my taxes Example 2. Amend my taxes You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Amend my taxes Because the trust fund is part of the U. Amend my taxes S. Amend my taxes Government, you contributed to a qualified organization. Amend my taxes You can deduct your contribution. Amend my taxes Examples. Amend my taxes   The following list gives some examples of qualified organizations. Amend my taxes Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Amend my taxes Most nonprofit charitable organizations such as the American Red Cross and the United Way. Amend my taxes Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Amend my taxes This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. Amend my taxes However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct . Amend my taxes Nonprofit hospitals and medical research organizations. Amend my taxes Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Amend my taxes Nonprofit volunteer fire companies. Amend my taxes Nonprofit organizations that develop and maintain public parks and recreation facilities. Amend my taxes Civil defense organizations. Amend my taxes Canadian charities. Amend my taxes   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Amend my taxes To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Amend my taxes See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Amend my taxes Mexican charities. Amend my taxes   Under the U. Amend my taxes S. Amend my taxes -Mexico income tax treaty, a contribution to a Mexican charitable organization may be deductible, but only if and to the extent the contribution would have been treated as a charitable contribution to a public charity created or organized under U. Amend my taxes S. Amend my taxes law. Amend my taxes To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Amend my taxes The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Amend my taxes Israeli charities. Amend my taxes   Under the U. Amend my taxes S. Amend my taxes -Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organization had been created or organized under U. Amend my taxes S. Amend my taxes law. Amend my taxes To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Amend my taxes The limits described in Limits on Deductions , later, apply. Amend my taxes The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Amend my taxes Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Amend my taxes A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. Amend my taxes The contributions must be made to a qualified organization and not set aside for use by a specific person. Amend my taxes If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. Amend my taxes See Contributions of Property , later. Amend my taxes Your deduction for charitable contributions generally cannot be more than 50% of your adjusted gross income (AGI), but in some cases 20% and 30% limits may apply. Amend my taxes In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Amend my taxes See Limits on Deductions , later. Amend my taxes Table 1 in this publication gives examples of contributions you can and cannot deduct. Amend my taxes Contributions From Which You Benefit If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Amend my taxes Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Amend my taxes If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Amend my taxes For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Amend my taxes Example 1. Amend my taxes You pay $65 for a ticket to a dinner-dance at a church. Amend my taxes Your entire $65 payment goes to the church. Amend my taxes The ticket to the dinner-dance has a fair market value of $25. Amend my taxes When you buy your ticket, you know its value is less than your payment. Amend my taxes To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Amend my taxes You can deduct $40 as a charitable contribution to the church. Amend my taxes Example 2. Amend my taxes At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Amend my taxes The amount you pay is no more than the fair rental value. Amend my taxes You have not made a deductible charitable contribution. Amend my taxes Athletic events. Amend my taxes   If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. Amend my taxes   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Amend my taxes Subtract the price of the tickets from your payment. Amend my taxes You can deduct 80% of the remaining amount as a charitable contribution. Amend my taxes Example 1. Amend my taxes You pay $300 a year for membership in a university's athletic scholarship program. Amend my taxes The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. Amend my taxes You can deduct $240 (80% of $300) as a charitable contribution. Amend my taxes Example 2. Amend my taxes The facts are the same as in Example 1 except your $300 payment includes the purchase of one season ticket for the stated ticket price of $120. Amend my taxes You must subtract the usual price of a ticket ($120) from your $300 payment. Amend my taxes The result is $180. Amend my taxes Your deductible charitable contribution is $144 (80% of $180). Amend my taxes Charity benefit events. Amend my taxes   If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive. Amend my taxes   If there is an established charge for the event, that charge is the value of your benefit. Amend my taxes If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Amend my taxes Whether you use the tickets or other privileges has no effect on the amount you can deduct. Amend my taxes However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Amend my taxes    Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this does not mean you can deduct the entire amount. Amend my taxes If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Amend my taxes Example. Amend my taxes You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Amend my taxes Printed on the ticket is “Contribution–$40. Amend my taxes ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Amend my taxes Membership fees or dues. Amend my taxes   You may be able to deduct membership fees or dues you pay to a qualified organization. Amend my taxes However, you can deduct only the amount that is more than the value of the benefits you receive. Amend my taxes   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Amend my taxes They are not qualified organizations. Amend my taxes Certain membership benefits can be disregarded. Amend my taxes   Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less. Amend my taxes Any rights or privileges, other than those discussed under Athletic events , earlier, that you can use frequently while you are a member, such as: Free or discounted admission to the organization's facilities or events, Free or discounted parking, Preferred access to goods or services, and Discounts on the purchase of goods and services. Amend my taxes Admission, while you are a member, to events open only to members of the organization if the organization reasonably projects that the cost per person (excluding any allocated overhead) is not more than $10. Amend my taxes 20. Amend my taxes Token items. Amend my taxes   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Amend my taxes You receive only a small item or other benefit of token value. Amend my taxes The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full. Amend my taxes The organization determines whether the value of an item or benefit is substantial by using Revenue Procedures 90-12 and 92-49 and the inflation adjustment in Revenue Procedure 2012–41. Amend my taxes Written statement. Amend my taxes   A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contribution and partly for goods or services. Amend my taxes The statement must say you can deduct only the amount of your payment that is more than the value of the goods or services you received. Amend my taxes It must also give you a good faith estimate of the value of those goods or services. Amend my taxes   The organization can give you the statement either when it solicits or when it receives the payment from you. Amend my taxes Exception. Amend my taxes   An organization will not have to give you this statement if one of the following is true. Amend my taxes The organization is: A governmental organization described in (5) under Types of Qualified Organizations , earlier, or An organization formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context. Amend my taxes You receive only items whose value is not substantial as described under Token items , earlier. Amend my taxes You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Amend my taxes Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Amend my taxes You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization (defined later) as part of a program of the organization to provide educational opportunities for the student, Is not your relative (defined later) or dependent (also defined later), and Is a full-time student in the twelfth or any lower grade at a school in the United States. Amend my taxes You can deduct up to $50 a month for each full calendar month the student lives with you. Amend my taxes Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Amend my taxes Qualified organization. Amend my taxes   For these purposes, a qualified organization can be any of the organizations described earlier under Types of Qualified Organizations , except those in (4) and (5). Amend my taxes For example, if you are providing a home for a student as part of a state or local government program, you cannot deduct your expenses as charitable contributions. Amend my taxes But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Amend my taxes Relative. Amend my taxes   The term “relative” means any of the following persons. Amend my taxes Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Amend my taxes A legally adopted child is considered your child. Amend my taxes Your brother, sister, half brother, half sister, stepbrother, or stepsister. Amend my taxes Your father, mother, grandparent, or other direct ancestor. Amend my taxes Your stepfather or stepmother. Amend my taxes A son or daughter of your brother or sister. Amend my taxes A brother or sister of your father or mother. Amend my taxes Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Amend my taxes Dependent. Amend my taxes   For this purpose, the term “dependent” means: A person you can claim as a dependent, or A person you could have claimed as a dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Amend my taxes    Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Amend my taxes S. Amend my taxes residents and cannot be claimed as dependents. Amend my taxes Qualifying expenses. Amend my taxes   You may be able to deduct the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spend for the well-being of the student. Amend my taxes Expenses that do not qualify. Amend my taxes   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Amend my taxes Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Amend my taxes Reimbursed expenses. Amend my taxes   In most cases, you cannot claim a charitable contribution deduction if you are compensated or reimbursed for any part of the costs of having a student live with you. Amend my taxes However, you may be able to claim a charitable contribution deduction for the unreimbursed portion of your expenses if you are reimbursed only for an extraordinary or one-time item, such as a hospital bill or vacation trip, you paid in advance at the request of the student's parents or the sponsoring organization. Amend my taxes Mutual exchange program. Amend my taxes   You cannot deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country. Amend my taxes Reporting expenses. Amend my taxes   For a list of what you must file with your return if you deduct expenses for a student living with you, see Reporting expenses for student living with you under How To Report, later. Amend my taxes Out-of-Pocket Expenses in Giving Services Table 2. Amend my taxes Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Amend my taxes All of the rules explained in this publication also apply. Amend my taxes See, in particular, Out-of-Pocket Expenses in Giving Services . Amend my taxes Question Answer I volunteer 6 hours a week in the office of a qualified organization. Amend my taxes The receptionist is paid $10 an hour for the same work. Amend my taxes Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Amend my taxes  The office is 30 miles from my home. Amend my taxes Can I deduct any of my car expenses for these trips? Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. Amend my taxes If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Amend my taxes I volunteer as a Red Cross nurse's aide at a hospital. Amend my taxes Can I deduct the cost of the uniforms I must wear? Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms are not suitable for everyday use, and you must wear them when volunteering. Amend my taxes I pay a babysitter to watch my children while I volunteer for a qualified organization. Amend my taxes Can I deduct these costs? No, you cannot deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. Amend my taxes (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Amend my taxes ) Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. Amend my taxes The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave, and Not personal, living, or family expenses. Amend my taxes Table 2 contains questions and answers that apply to some individuals who volunteer their services. Amend my taxes Underprivileged youths selected by charity. Amend my taxes   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Amend my taxes The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Amend my taxes Your own similar expenses in accompanying the youths are not deductible. Amend my taxes Conventions. Amend my taxes   If a qualified organization selects you to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. Amend my taxes However, see Travel , later. Amend my taxes   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Amend my taxes You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Amend my taxes   You cannot deduct your travel expenses in attending a church convention if you go only as a member of your church rather than as a chosen representative. Amend my taxes You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Amend my taxes Uniforms. Amend my taxes   You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization. Amend my taxes Foster parents. Amend my taxes   You may be able to deduct as a charitable contribution some of the costs of being a foster parent (foster care provider) if you have no profit motive in providing the foster care and are not, in fact, making a profit. Amend my taxes A qualified organization must select the individuals you take into your home for foster care. Amend my taxes   You can deduct expenses that meet both of the following requirements. Amend my taxes They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Amend my taxes They are incurred primarily to benefit the qualified organization. Amend my taxes   Unreimbursed expenses that you cannot deduct as charitable contributions may be considered support provided by you in determining whether you can claim the foster child as a dependent. Amend my taxes For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Amend my taxes Example. Amend my taxes You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Amend my taxes Your unreimbursed expenses are not deductible as charitable contributions. Amend my taxes Church deacon. Amend my taxes   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Amend my taxes These expenses include the cost of vestments, books, and transportation required in order to serve in the program as either a deacon candidate or an ordained deacon. Amend my taxes Car expenses. Amend my taxes   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, directly related to the use of your car in giving services to a charitable organization. Amend my taxes You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Amend my taxes   If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. Amend my taxes   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Amend my taxes   You must keep reliable written records of your car expenses. Amend my taxes For more information, see Car expenses under Records To Keep, later. Amend my taxes Travel. Amend my taxes   Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. Amend my taxes This applies whether you pay the expenses directly or indirectly. Amend my taxes You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Amend my taxes   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Amend my taxes Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. Amend my taxes However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses. Amend my taxes Example 1. Amend my taxes You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Amend my taxes You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Amend my taxes You participate in the activities of the group and enjoy your time with them. Amend my taxes You oversee the breaking of camp and you transport the group home. Amend my taxes You can deduct your travel expenses. Amend my taxes Example 2. Amend my taxes You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Amend my taxes The project is sponsored by a charitable organization. Amend my taxes In most circumstances, you cannot deduct your expenses. Amend my taxes Example 3. Amend my taxes You work for several hours each morning on an archeological dig sponsored by a charitable organization. Amend my taxes The rest of the day is free for recreation and sightseeing. Amend my taxes You cannot take a charitable contribution deduction even though you work very hard during those few hours. Amend my taxes Example 4. Amend my taxes You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Amend my taxes In the evening you go to the theater. Amend my taxes You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Amend my taxes Daily allowance (per diem). Amend my taxes   If you provide services for a charitable organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income any part of the allowance that is more than your deductible travel expenses. Amend my taxes You may be able to deduct any necessary travel expenses that are more than the allowance. Amend my taxes Deductible travel expenses. Amend my taxes   These include: Air, rail, and bus transportation, Out-of-pocket expenses for your car, Taxi fares or other costs of transportation between the airport or station and your hotel, Lodging costs, and The cost of meals. Amend my taxes Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Amend my taxes For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Amend my taxes Expenses of Whaling Captains You may be able to deduct as a charitable contribution any reasonable and necessary whaling expenses you pay during the year to carry out sanctioned whaling activities. Amend my taxes The deduction is limited to $10,000 a year. Amend my taxes To claim the deduction, you must be recognized by the Alaska Eskimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities. Amend my taxes Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Amend my taxes Whaling expenses include expenses for: Acquiring and maintaining whaling boats, weapons, and gear used in sanctioned whaling activities, Supplying food for the crew and other provisions for carrying out these activities, and Storing and distributing the catch from these activities. Amend my taxes You must keep records showing the time, place, date, amount, and nature of the expenses. Amend my taxes For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Amend my taxes irs. Amend my taxes gov/pub/irs-irbs/irb06-47. Amend my taxes pdf. Amend my taxes Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Amend my taxes You cannot deduct as a charitable contribution: A contribution to a specific individual, A contribution to a nonqualified organization, The part of a contribution from which you receive or expect to receive a benefit, The value of your time or services, Your personal expenses, A qualified charitable distribution from an individual retirement arrangement (IRA), Appraisal fees, Certain contributions to donor-advised funds, or Certain contributions of partial interests in property. Amend my taxes Detailed discussions of these items follow. Amend my taxes Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Amend my taxes Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Amend my taxes Contributions to individuals who are needy or worthy. Amend my taxes You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Amend my taxes But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person. Amend my taxes Example. Amend my taxes You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Amend my taxes However, you cannot deduct contributions earmarked for relief of a particular individual or family. Amend my taxes Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Amend my taxes Expenses you paid for another person who provided services to a qualified organization. Amend my taxes Example. Amend my taxes Your son does missionary work. Amend my taxes You pay his expenses. Amend my taxes You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Amend my taxes Payments to a hospital that are for a specific patient's care or for services for a specific patient. Amend my taxes You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Amend my taxes Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Amend my taxes Certain state bar associations if: The bar is not a political subdivision of a state, The bar has private, as well as public, purposes, such as promoting the professional interests of members, and Your contribution is unrestricted and can be used for private purposes. Amend my taxes Chambers of commerce and other business leagues or organizations. Amend my taxes Civic leagues and associations. Amend my taxes Communist organizations. Amend my taxes Country clubs and other social clubs. Amend my taxes Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Amend my taxes (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Amend my taxes ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Amend my taxes However, certain contributions to a qualified organization for use in a program conducted by a foreign charity may be deductible as long as they are not earmarked to go to the foreign charity. Amend my taxes For the contribution to be deductible, the qualified organization must approve the program as furthering its own exempt purposes and must keep control over the use of the contributed funds. Amend my taxes The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Amend my taxes Homeowners' associations. Amend my taxes Labor unions. Amend my taxes But you may be able to deduct union dues as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Amend my taxes See Publication 529, Miscellaneous Deductions. Amend my taxes Political organizations and candidates. Amend my taxes Contributions From Which You Benefit If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive. Amend my taxes See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Amend my taxes These contributions include the following. Amend my taxes Contributions for lobbying. Amend my taxes This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Amend my taxes Contributions to a retirement home for room, board, maintenance, or admittance. Amend my taxes Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Amend my taxes Costs of raffles, bingo, lottery, etc. Amend my taxes You cannot deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. Amend my taxes For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Amend my taxes Dues to fraternal orders and similar groups. Amend my taxes However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Amend my taxes Tuition, or amounts you pay instead of tuition. Amend my taxes You cannot deduct as a charitable contribution amounts you pay as tuition even if you pay them for children to attend parochial schools or qualifying nonprofit daycare centers. Amend my taxes You also cannot deduct any fixed amount you must pay in addition to, or instead of, tuition to enroll in a private school, even if it is designated as a “donation. Amend my taxes ” Contributions connected with split-dollar insurance arrangements. Amend my taxes You cannot deduct any part of a contribution to a charitable organization if, in connection with the contribution, the organization directly or indirectly pays, has paid, or is expected to pay any premium on any life insurance, annuity, or endowment contract for which you, any member of your family, or any other person chosen by you (other than a qualified charitable organization) is a beneficiary. Amend my taxes Example. Amend my taxes You donate money to a charitable organization. Amend my taxes The charity uses the money to purchase a cash value life insurance policy. Amend my taxes The beneficiaries under the insurance policy include members of your family. Amend my taxes Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Amend my taxes Qualified Charitable Distributions A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. Amend my taxes You must have been at least age 70½ when the distribution was made. Amend my taxes Your total QCDs for the year cannot be more than $100,000. Amend my taxes If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Amend my taxes See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Amend my taxes Value of Time or Services You cannot deduct the value of your time or services, including: Blood donations to the American Red Cross or to blood banks, and The value of income lost while you work as an unpaid volunteer for a qualified organization. Amend my taxes Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Amend my taxes The cost of meals you eat while you perform services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services. Amend my taxes Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Amend my taxes However, you may be able to claim a tax credit for these expenses. Amend my taxes Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Amend my taxes See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Amend my taxes You also may be able to claim an exemption for the child. Amend my taxes See Exemptions for Dependents in Publication 501 for more information. Amend my taxes Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Amend my taxes But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Amend my taxes See Deductions Subject to the 2% Limit in Publication 529 for more information. Amend my taxes Contributions to Donor-Advised Funds You cannot deduct a contribution to a donor-advised fund if: The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company, or You do not have an acknowledgment from that sponsoring organization that it has exclusive legal control over the assets contributed. Amend my taxes There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Amend my taxes Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or invest amounts held in the fund. Amend my taxes For details, see Internal Revenue Code section 170(f)(18). Amend my taxes Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Amend my taxes For details, see Partial Interest in Property under Contributions of Property, later. Amend my taxes Contributions of Property If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Amend my taxes However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Amend my taxes See Giving Property That Has Increased in Value , later. Amend my taxes For information about the records you must keep and the information you must furnish with your return if you donate property, see Records To Keep and How To Report , later. Amend my taxes Contributions Subject to Special Rules Special rules apply if you contribute: Clothing or household items, A car, boat, or airplane, Taxidermy property, Property subject to a debt, A partial interest in property, A fractional interest in tangible personal property, A qualified conservation contribution, A future interest in tangible personal property, Inventory from your business, or A patent or other intellectual property. Amend my taxes These special rules are described next. Amend my taxes Clothing and Household Items You cannot take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. Amend my taxes Exception. Amend my taxes   You can take a deduction for a contribution of an item of clothing or a household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. Amend my taxes Household items. Amend my taxes   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Amend my taxes   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Amend my taxes Fair market value. Amend my taxes   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Amend my taxes Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Amend my taxes A qualified vehicle is: A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways, A boat, or An airplane. Amend my taxes Deduction more than $500. Amend my taxes   If you donate a qualified vehicle with a claimed fair market value of more than $500, you can deduct the smaller of: The gross proceeds from the sale of the vehicle by the organization, or The vehicle's fair market value on the date of the contribution. Amend my taxes If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value , later. Amend my taxes Form 1098-C. Amend my taxes   You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. Amend my taxes The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Amend my taxes   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Amend my taxes S. Amend my taxes Individual Income Tax Transmittal for an IRS e-file Return, and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. Amend my taxes   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Amend my taxes    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Amend my taxes But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Amend my taxes Filing deadline approaching and still no Form 1098-C. Amend my taxes   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Amend my taxes Request an automatic 6-month extension of time to file your return. Amend my taxes You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Amend my taxes S. Amend my taxes Individual Income Tax Return. Amend my taxes For more information, see the instructions for Form 4868. Amend my taxes File the return on time without claiming the deduction for the qualified vehicle. Amend my taxes After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Amend my taxes S. Amend my taxes Individual Income Tax Return, claiming the deduction. Amend my taxes Attach Copy B of Form 1098-C (or other statement) to the amended return. Amend my taxes Exceptions. Amend my taxes   There are two exceptions to the rules just described for deductions of more than $500. Amend my taxes Exception 1—vehicle used or improved by organization. Amend my taxes   If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. Amend my taxes But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Amend my taxes The Form 1098-C (or other statement) will show whether this exception applies. Amend my taxes    Exception 2—vehicle given or sold to needy individual. Amend my taxes   If the qualified organization will give the vehicle, or sell it for a price well below fair market value, to a needy individual to further the organization's charitable purpose, you generally can deduct the vehicle's fair market value at the time of the contribution. Amend my taxes But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Amend my taxes The Form 1098-C (or other statement) will show whether this exception applies. Amend my taxes   This exception does not apply if the organization sells the vehicle at auction. Amend my taxes In that case, you cannot deduct the vehicle's fair market value. Amend my taxes Example. Amend my taxes Anita donates a used car to a qualified organization. Amend my taxes She bought it 3 years ago for $9,000. Amend my taxes A used car guide shows the fair market value for this type of car is $6,000. Amend my taxes However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Amend my taxes Neither exception 1 nor exception 2 applies. Amend my taxes If Anita itemizes her deductions, she can deduct $2,900 for her donation. Amend my taxes She must attach Form 1098-C and Form 8283 to her return. Amend my taxes Deduction $500 or less. Amend my taxes   If the qualified organization sells the vehicle for $500 or less and exceptions 1 and 2 do not apply, you can deduct the smaller of: $500, or The vehicle's fair market value on the date of the contribution. Amend my taxes But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Amend my taxes   If the vehicle's fair market value is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. Amend my taxes The statement must contain the information and meet the tests for an acknowledgment described under Contributions of $250 or More under Records To Keep, later. Amend my taxes Fair market value. Amend my taxes   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Amend my taxes Donations of inventory. Amend my taxes   The vehicle donation rules just described do not apply to donations of inventory. Amend my taxes For example, these rules do not apply if you are a car dealer who donates a car you had been holding for sale to customers. Amend my taxes See Inventory , later. Amend my taxes Taxidermy Property If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its fair market value, whichever is less. Amend my taxes This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Amend my taxes Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Amend my taxes Your basis does not include transportation or travel costs. Amend my taxes It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Amend my taxes In addition, it does not include the value of your time. Amend my taxes Taxidermy property means any work of art that: Is the reproduction or preservation of an animal, in whole or in part, Is prepared, stuffed, or mounted to recreate one or more characteristics of the animal, and Contains a part of the body of the dead animal. Amend my taxes Property Subject to a Debt If you contribute property subject to a debt (such as a mortgage), you must reduce the fair market value of the property by: Any allowable deduction for interest you paid (or will pay) that is attributable to any period after the contribution, and If the property is a bond, the lesser of: Any allowable deduction for interest you paid (or will pay) to buy or carry the bond that is attributable to any period before the contribution, or The interest, including bond discount, receivable on the bond that is attributable to any period before the contribution, and that is not includible in your income due to your accounting method. Amend my taxes This prevents you from deducting the same amount as both investment interest and a charitable contribution. Amend my taxes If the recipient (or another person) assumes the debt, you must also reduce the fair market value of the property by the amount of the outstanding debt assumed. Amend my taxes The amount of the debt is also treated as an amount realized on the sale or exchange of property for purposes of figuring your taxable gain (if any). Amend my taxes For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Amend my taxes Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Amend my taxes Right to use property. Amend my taxes   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Amend my taxes Example 1. Amend my taxes You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Amend my taxes Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Amend my taxes Example 2. Amend my taxes Mandy White owns a vacation home at the beach that she sometimes rents to others. Amend my taxes For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Amend my taxes At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Amend my taxes Mandy cannot claim a deduction because of the partial interest rule. Amend my taxes Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Amend my taxes See Contributions From Which You Benefit , earlier. Amend my taxes Exceptions. Amend my taxes   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Amend my taxes A remainder interest in your personal home or farm. Amend my taxes A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Amend my taxes Example. Amend my taxes You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Amend my taxes You can deduct the value of the remainder interest. Amend my taxes An undivided part of your entire interest. Amend my taxes This must consist of a part of every substantial interest or right you own in the property and must last as long as your interest in the property lasts. Amend my taxes But see Fractional Interest in Tangible Personal Property , later. Amend my taxes Example. Amend my taxes You contribute voting stock to a qualified organization but keep the right to vote the stock. Amend my taxes The right to vote is a substantial right in the stock. Amend my taxes You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Amend my taxes A partial interest that would be deductible if transferred to certain types of trusts. Amend my taxes A qualified conservation contribution (defined later). Amend my taxes For information about how to figure the value of a contribution of a partial interest in property, see Partial Interest in Property Not in Trust in Publication 561. Amend my taxes Fractional Interest in Tangible Personal Property You cannot deduct a charitable contribution of a fractional interest in tangible personal property unless all interests in the property are held immediately before the contribution by: You, or You and the qualifying organization receiving the contribution. Amend my taxes If you make an additional contribution later, the fair market value of that contribution will be determined by using the smaller of: The fair market value of the property at the time of the initial contribution, or The fair market value of the property at the time of the additional contribution. Amend my taxes Tangible personal property is defined later under Future Interest in Tangible Personal Property . Amend my taxes A fractional interest in property is an undivided portion of your entire interest in the property. Amend my taxes Example. Amend my taxes An undivided one-quarter interest in a painting that entitles an art museum to possession of the painting for 3 months of each year is a fractional interest in the property. Amend my taxes Recapture of deduction. Amend my taxes   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Amend my taxes You contributed a fractional interest in tangible personal property after August 17, 2006. Amend my taxes You do not contribute the rest of your interests in the property to the original recipient or, if it no longer exists, another qualified organization on or before the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Amend my taxes   Recapture is also required if the qualified organization has not taken substantial physical possession of the property and used it in a way related to the organization's purpose during the period beginning on the date of the initial contribution and ending on the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Amend my taxes Additional tax. Amend my taxes   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Amend my taxes Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. Amend my taxes Qualified organization. Amend my taxes   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charity, or An organization controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. Amend my taxes The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Amend my taxes   A publicly supported charity is an organization of the type described in (1) under Types of Qualified Organizations , earlier, that normally receives a substantial part of its support, other than income from its exempt activities, from direct or indirect contributions from the general public or from governmental units. Amend my taxes Qualified real property interest. Amend my taxes   This is any of the following interests in real property. Amend my taxes Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). Amend my taxes A remainder interest. Amend my taxes A restriction (granted in perpetuity) on the use that may be made of the real property. Amend my taxes Conservation purposes. Amend my taxes   Your contribution must be made only for one of the following conservation purposes. Amend my taxes Preserving land areas for outdoor recreation by, or for the education of, the general public. Amend my taxes Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Amend my taxes Preserving open space, including farmland and forest land, if it yields a significant public benefit. Amend my taxes The open space must be preserved either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. Amend my taxes Preserving a historically important land area or a certified historic structure. Amend my taxes Building in registered historic district. Amend my taxes   If a building in a registered historic district is a certified historic structure, a contribution of a qualified real property interest that is an easement or other restriction on the exterior of the building is deductible only if it meets all of the following conditions. Amend my taxes The restriction must preserve the entire exterior of the building (including its front, sides, rear, and height) and must prohibit any change to the exterior of the building that is inconsistent with its historical character. Amend my taxes You and the organization receiving the contribution must enter into a written agreement certifying, under penalty of perjury, that the organization: Is a qualified organization with a purpose of environmental protection, land conservation, open space preservation, or historic preservation, and Has the resources to manage and enforce the restriction and a commitment to do so. Amend my taxes You must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. Amend my taxes   If you claimed the rehabilitation credit for the building for any of the 5 years before the year of the contribution, your charitable deduction is reduced. Amend my taxes For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Amend my taxes   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Amend my taxes See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Amend my taxes You may be able to deduct the filing fee as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Amend my taxes See Deductions Subject to the 2% Limit in Publication 529 for more information. Amend my taxes More information. Amend my taxes   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Amend my taxes For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Amend my taxes For more information about qualified conservation contributions, see Regulations section 1. Amend my taxes 170A-14. Amend my taxes Future Interest in Tangible Personal Property You cannot deduct the value of a charitable contribution of a future interest in tangible personal property until all intervening interests in and rights to the actual possession or enjoyment of the property have either expired or been turned over to someone other than yourself, a related person, or a related organization. Amend my taxes But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Amend my taxes Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Amend my taxes Related organizations may include a partnership or corporation in which you have an interest, or an estate or trust with which you have a connection. Amend my taxes Tangible personal property. Amend my taxes   This is any property, other than land or buildings, that can be seen or touched. Amend my taxes It includes furniture, books, jewelry, paintings, and cars. Amend my taxes Future interest. Amend my taxes   This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest under state law. Amend my taxes Example. Amend my taxes You own an antique car that you contribute to a museum. Amend my taxes You give up ownership, but retain the right to keep the car in your garage with your personal collection. Amend my taxes Because you keep an interest in the property, you cannot deduct the contribution. Amend my taxes If you turn the car over to the museum in a later year, giving up all rights to its use, possession, and enjoyment, you can take a deduction for the contribution in that later year. Amend my taxes Inventory If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it or its basis. Amend my taxes The basis of contributed inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Amend my taxes You must remove the amount of your charitable contribution deduction from your opening inventory. Amend my taxes It is not part of the cost of goods sold. Amend my taxes If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Amend my taxes Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Amend my taxes For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Amend my taxes A special rule applies to certain donations of food inventory. Amend my taxes See Food Inventory, later. Amend my taxes Patents and Other Intellectual Property If you donate intellectual property to a qualified organization, your deduction is limited to the basis of the property or the fair market value of the property, whichever is smaller. Amend my taxes Intellectual property means any of the following: Patents. Amend my taxes Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Amend my taxes Trademarks. Amend my taxes Trade names. Amend my taxes Trade secrets. Amend my taxes Know-how. Amend my taxes Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Amend my taxes Other similar property or applications or registrations of such property. Amend my taxes Additional deduction based on income. Amend my taxes   You may be able to claim additional charitable contribution deductions in the year of the contribution and years following, based on the income, if any, from the donated property. Amend my taxes   The following table shows the percentage of income from the property that you can deduct for each of your tax years ending on or after the date of the contribution. Amend my taxes In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Amend my taxes However, you can take the additional deduction only to the extent the total of the amounts figured using this table is more than the amount of the deduction claimed for the original donation of the property. Amend my taxes   After the legal life of the intellectual property ends, or after the 10th anniversary of the donation, whichever is earlier, no additional deduction is allowed. Amend my taxes The additional deductions cannot be taken for intellectual property donated to certain private foundations. Amend my taxes Tax year Deductible percentage 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30% 10 20% 11 10% 12 10% Reporting requirements. Amend my taxes   You must inform the organization at the time of the donation that you intend to treat the donation as a contribution subject to the provisions just discussed. Amend my taxes   The organization is required to file an information return showing the income from the property, with a copy to you. Amend my taxes This is done on Form 8899, Notice of Income From Donated Intellectual Property. Amend my taxes Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Amend my taxes Publication 561 contains a more complete discussion. Amend my taxes Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Amend my taxes Used clothing. Amend my taxes   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Amend my taxes There are no fixed formulas or methods for finding the value of items of clothing. Amend my taxes   You should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. Amend my taxes      Also see Clothing and Household Items , earlier. Amend my taxes Example. Amend my taxes    Kristin donated a coat to a thrift store operated by her church. Amend my taxes She paid $300 for the coat 3 years ago. Amend my taxes Similar coats in the thrift store sell for $50. Amend my taxes The fair market value of the coat is $50. Amend my taxes Kristin's donation is limited to $50. Amend my taxes Household items. Amend my taxes   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Amend my taxes These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Amend my taxes For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Amend my taxes   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Amend my taxes Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Amend my taxes Do not include any of this evidence with your tax return. Amend my taxes   If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art in Publication 561. Amend my taxes   Also see Clothing and Household Items , earlier. Amend my taxes Cars, boats, and airplanes. Amend my taxes   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Amend my taxes Boats. Amend my taxes   Except for small, inexpensive boats, the valuation of boats should be based on an appraisal by a marine surveyor or appraiser because the physical condition is critical to the value. Amend my taxes Cars. Amend my taxes   Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. Amend my taxes The guides may be published monthly or seasonally, and for different regions of the country. Amend my taxes These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Amend my taxes The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Amend my taxes But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Amend my taxes   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Amend my taxes You can also find used car pricing information on the Internet. Amend my taxes   To find the fair market value of a donated car, use the price listed in a used car guide for a private party sale, not the dealer retail value. Amend my taxes However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Amend my taxes The fair market value of a donated car is the same as the price listed in a used car guide for a private party sale only if the guide lists a sales price for a car that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated car. Amend my taxes Example. Amend my taxes You donate a used car in poor condition to a local high school for use by students studying car repair. Amend my taxes A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Amend my taxes However, the guide shows the price for a private party sale of the car is only $750. Amend my taxes The fair market value of the car is considered to be $750. Amend my taxes Large quantities. Amend my taxes   If you contribute a large number of the same item, fair market value is the price at which comparable numbers of the item are being sold. Amend my taxes Example. Amend my taxes You purchase 500 bibles for $1,000. Amend my taxes The person who sells them to you says the retail value of these bibles is $3,000. Amend my taxes If you contribute the bibles to a qualified organization, you can claim a deduction only for the price at which similar numbers of the same bible are currently being sold. Amend my taxes Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer