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Hrblockfreefile 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. Hrblockfreefile Text message. Hrblockfreefile Credit card. Hrblockfreefile Pay-by-phone account. Hrblockfreefile Stock certificate. Hrblockfreefile Promissory note. Hrblockfreefile Option. Hrblockfreefile Borrowed funds. Hrblockfreefile Conditional gift. Hrblockfreefile 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. Hrblockfreefile Total deduction over $500. Hrblockfreefile Deduction over $5,000 for one item. Hrblockfreefile Vehicle donations. Hrblockfreefile Clothing and household items not in good used condition. Hrblockfreefile Easement on building in historic district. Hrblockfreefile Deduction over $500,000. Hrblockfreefile 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. Hrblockfreefile Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Hrblockfreefile How to check whether an organization can receive deductible charitable contributions. Hrblockfreefile   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Hrblockfreefile Or go to IRS. Hrblockfreefile gov. Hrblockfreefile Click on “Tools” and then on “Exempt Organizations Select Check” (www. Hrblockfreefile irs. Hrblockfreefile gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Hrblockfreefile This online tool will enable you to search for qualified organizations. Hrblockfreefile You can also call the IRS to find out if an organization is qualified. Hrblockfreefile Call 1-877-829-5500. Hrblockfreefile 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. Hrblockfreefile Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Hrblockfreefile gsa. Hrblockfreefile gov/fedrelay. Hrblockfreefile Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Hrblockfreefile 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). Hrblockfreefile 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. Hrblockfreefile Certain organizations that foster national or international amateur sports competition also qualify. Hrblockfreefile War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Hrblockfreefile Domestic fraternal societies, orders, and associations operating under the lodge system. Hrblockfreefile (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. Hrblockfreefile ) Certain nonprofit cemetery companies or corporations. Hrblockfreefile (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. Hrblockfreefile ) The United States or any state, the District of Columbia, a U. Hrblockfreefile S. Hrblockfreefile possession (including Puerto Rico), a political subdivision of a state or U. Hrblockfreefile S. Hrblockfreefile possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Hrblockfreefile (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Hrblockfreefile ) Example 1. Hrblockfreefile You contribute cash to your city's police department to be used as a reward for information about a crime. Hrblockfreefile The city police department is a qualified organization, and your contribution is for a public purpose. Hrblockfreefile You can deduct your contribution. Hrblockfreefile Example 2. Hrblockfreefile You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Hrblockfreefile Because the trust fund is part of the U. Hrblockfreefile S. Hrblockfreefile Government, you contributed to a qualified organization. Hrblockfreefile You can deduct your contribution. Hrblockfreefile Examples. Hrblockfreefile   The following list gives some examples of qualified organizations. Hrblockfreefile Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Hrblockfreefile Most nonprofit charitable organizations such as the American Red Cross and the United Way. Hrblockfreefile Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Hrblockfreefile 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. Hrblockfreefile 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 . Hrblockfreefile Nonprofit hospitals and medical research organizations. Hrblockfreefile Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Hrblockfreefile Nonprofit volunteer fire companies. Hrblockfreefile Nonprofit organizations that develop and maintain public parks and recreation facilities. Hrblockfreefile Civil defense organizations. Hrblockfreefile Canadian charities. Hrblockfreefile   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Hrblockfreefile To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Hrblockfreefile See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Hrblockfreefile Mexican charities. Hrblockfreefile   Under the U. Hrblockfreefile S. Hrblockfreefile -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. Hrblockfreefile S. Hrblockfreefile law. Hrblockfreefile To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Hrblockfreefile The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Hrblockfreefile Israeli charities. Hrblockfreefile   Under the U. Hrblockfreefile S. Hrblockfreefile -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. Hrblockfreefile S. Hrblockfreefile law. Hrblockfreefile To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Hrblockfreefile The limits described in Limits on Deductions , later, apply. Hrblockfreefile The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Hrblockfreefile Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Hrblockfreefile 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. Hrblockfreefile The contributions must be made to a qualified organization and not set aside for use by a specific person. Hrblockfreefile 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. Hrblockfreefile See Contributions of Property , later. Hrblockfreefile 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. Hrblockfreefile In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Hrblockfreefile See Limits on Deductions , later. Hrblockfreefile Table 1 in this publication gives examples of contributions you can and cannot deduct. Hrblockfreefile 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. Hrblockfreefile Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Hrblockfreefile If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Hrblockfreefile For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Hrblockfreefile Example 1. Hrblockfreefile You pay $65 for a ticket to a dinner-dance at a church. Hrblockfreefile Your entire $65 payment goes to the church. Hrblockfreefile The ticket to the dinner-dance has a fair market value of $25. Hrblockfreefile When you buy your ticket, you know its value is less than your payment. Hrblockfreefile To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Hrblockfreefile You can deduct $40 as a charitable contribution to the church. Hrblockfreefile Example 2. Hrblockfreefile At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Hrblockfreefile The amount you pay is no more than the fair rental value. Hrblockfreefile You have not made a deductible charitable contribution. Hrblockfreefile Athletic events. Hrblockfreefile   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. Hrblockfreefile   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Hrblockfreefile Subtract the price of the tickets from your payment. Hrblockfreefile You can deduct 80% of the remaining amount as a charitable contribution. Hrblockfreefile Example 1. Hrblockfreefile You pay $300 a year for membership in a university's athletic scholarship program. Hrblockfreefile 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. Hrblockfreefile You can deduct $240 (80% of $300) as a charitable contribution. Hrblockfreefile Example 2. Hrblockfreefile 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. Hrblockfreefile You must subtract the usual price of a ticket ($120) from your $300 payment. Hrblockfreefile The result is $180. Hrblockfreefile Your deductible charitable contribution is $144 (80% of $180). Hrblockfreefile Charity benefit events. Hrblockfreefile   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. Hrblockfreefile   If there is an established charge for the event, that charge is the value of your benefit. Hrblockfreefile If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Hrblockfreefile Whether you use the tickets or other privileges has no effect on the amount you can deduct. Hrblockfreefile However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Hrblockfreefile    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. Hrblockfreefile If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Hrblockfreefile Example. Hrblockfreefile You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Hrblockfreefile Printed on the ticket is “Contribution–$40. Hrblockfreefile ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Hrblockfreefile Membership fees or dues. Hrblockfreefile   You may be able to deduct membership fees or dues you pay to a qualified organization. Hrblockfreefile However, you can deduct only the amount that is more than the value of the benefits you receive. Hrblockfreefile   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Hrblockfreefile They are not qualified organizations. Hrblockfreefile Certain membership benefits can be disregarded. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile 20. Hrblockfreefile Token items. Hrblockfreefile   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Hrblockfreefile You receive only a small item or other benefit of token value. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile Written statement. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile It must also give you a good faith estimate of the value of those goods or services. Hrblockfreefile   The organization can give you the statement either when it solicits or when it receives the payment from you. Hrblockfreefile Exception. Hrblockfreefile   An organization will not have to give you this statement if one of the following is true. Hrblockfreefile 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. Hrblockfreefile You receive only items whose value is not substantial as described under Token items , earlier. Hrblockfreefile You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Hrblockfreefile Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Hrblockfreefile 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. Hrblockfreefile You can deduct up to $50 a month for each full calendar month the student lives with you. Hrblockfreefile Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Hrblockfreefile Qualified organization. Hrblockfreefile   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). Hrblockfreefile 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. Hrblockfreefile But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Hrblockfreefile Relative. Hrblockfreefile   The term “relative” means any of the following persons. Hrblockfreefile Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Hrblockfreefile A legally adopted child is considered your child. Hrblockfreefile Your brother, sister, half brother, half sister, stepbrother, or stepsister. Hrblockfreefile Your father, mother, grandparent, or other direct ancestor. Hrblockfreefile Your stepfather or stepmother. Hrblockfreefile A son or daughter of your brother or sister. Hrblockfreefile A brother or sister of your father or mother. Hrblockfreefile Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Hrblockfreefile Dependent. Hrblockfreefile   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. Hrblockfreefile    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. Hrblockfreefile S. Hrblockfreefile residents and cannot be claimed as dependents. Hrblockfreefile Qualifying expenses. Hrblockfreefile   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. Hrblockfreefile Expenses that do not qualify. Hrblockfreefile   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Hrblockfreefile Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Hrblockfreefile Reimbursed expenses. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile Mutual exchange program. Hrblockfreefile   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. Hrblockfreefile Reporting expenses. Hrblockfreefile   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. Hrblockfreefile Out-of-Pocket Expenses in Giving Services Table 2. Hrblockfreefile Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Hrblockfreefile All of the rules explained in this publication also apply. Hrblockfreefile See, in particular, Out-of-Pocket Expenses in Giving Services . Hrblockfreefile Question Answer I volunteer 6 hours a week in the office of a qualified organization. Hrblockfreefile The receptionist is paid $10 an hour for the same work. Hrblockfreefile Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Hrblockfreefile  The office is 30 miles from my home. Hrblockfreefile 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. Hrblockfreefile If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Hrblockfreefile I volunteer as a Red Cross nurse's aide at a hospital. Hrblockfreefile 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. Hrblockfreefile I pay a babysitter to watch my children while I volunteer for a qualified organization. Hrblockfreefile 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. Hrblockfreefile (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Hrblockfreefile ) 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. Hrblockfreefile 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. Hrblockfreefile Table 2 contains questions and answers that apply to some individuals who volunteer their services. Hrblockfreefile Underprivileged youths selected by charity. Hrblockfreefile   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Hrblockfreefile The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Hrblockfreefile Your own similar expenses in accompanying the youths are not deductible. Hrblockfreefile Conventions. Hrblockfreefile   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. Hrblockfreefile However, see Travel , later. Hrblockfreefile   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Hrblockfreefile You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Hrblockfreefile   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. Hrblockfreefile You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Hrblockfreefile Uniforms. Hrblockfreefile   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. Hrblockfreefile Foster parents. Hrblockfreefile   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. Hrblockfreefile A qualified organization must select the individuals you take into your home for foster care. Hrblockfreefile   You can deduct expenses that meet both of the following requirements. Hrblockfreefile They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Hrblockfreefile They are incurred primarily to benefit the qualified organization. Hrblockfreefile   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. Hrblockfreefile For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Hrblockfreefile Example. Hrblockfreefile You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Hrblockfreefile Your unreimbursed expenses are not deductible as charitable contributions. Hrblockfreefile Church deacon. Hrblockfreefile   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Hrblockfreefile 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. Hrblockfreefile Car expenses. Hrblockfreefile   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. Hrblockfreefile You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Hrblockfreefile   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. Hrblockfreefile   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Hrblockfreefile   You must keep reliable written records of your car expenses. Hrblockfreefile For more information, see Car expenses under Records To Keep, later. Hrblockfreefile Travel. Hrblockfreefile   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. Hrblockfreefile This applies whether you pay the expenses directly or indirectly. Hrblockfreefile You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Hrblockfreefile   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile Example 1. Hrblockfreefile You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Hrblockfreefile You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Hrblockfreefile You participate in the activities of the group and enjoy your time with them. Hrblockfreefile You oversee the breaking of camp and you transport the group home. Hrblockfreefile You can deduct your travel expenses. Hrblockfreefile Example 2. Hrblockfreefile You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Hrblockfreefile The project is sponsored by a charitable organization. Hrblockfreefile In most circumstances, you cannot deduct your expenses. Hrblockfreefile Example 3. Hrblockfreefile You work for several hours each morning on an archeological dig sponsored by a charitable organization. Hrblockfreefile The rest of the day is free for recreation and sightseeing. Hrblockfreefile You cannot take a charitable contribution deduction even though you work very hard during those few hours. Hrblockfreefile Example 4. Hrblockfreefile You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Hrblockfreefile In the evening you go to the theater. Hrblockfreefile You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Hrblockfreefile Daily allowance (per diem). Hrblockfreefile   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. Hrblockfreefile You may be able to deduct any necessary travel expenses that are more than the allowance. Hrblockfreefile Deductible travel expenses. Hrblockfreefile   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. Hrblockfreefile Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Hrblockfreefile For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Hrblockfreefile 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. Hrblockfreefile The deduction is limited to $10,000 a year. Hrblockfreefile 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. Hrblockfreefile Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Hrblockfreefile 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. Hrblockfreefile You must keep records showing the time, place, date, amount, and nature of the expenses. Hrblockfreefile For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Hrblockfreefile irs. Hrblockfreefile gov/pub/irs-irbs/irb06-47. Hrblockfreefile pdf. Hrblockfreefile Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Hrblockfreefile 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. Hrblockfreefile Detailed discussions of these items follow. Hrblockfreefile Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Hrblockfreefile Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Hrblockfreefile Contributions to individuals who are needy or worthy. Hrblockfreefile You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Hrblockfreefile 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. Hrblockfreefile Example. Hrblockfreefile You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Hrblockfreefile However, you cannot deduct contributions earmarked for relief of a particular individual or family. Hrblockfreefile Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Hrblockfreefile Expenses you paid for another person who provided services to a qualified organization. Hrblockfreefile Example. Hrblockfreefile Your son does missionary work. Hrblockfreefile You pay his expenses. Hrblockfreefile You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Hrblockfreefile Payments to a hospital that are for a specific patient's care or for services for a specific patient. Hrblockfreefile You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Hrblockfreefile Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Hrblockfreefile 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. Hrblockfreefile Chambers of commerce and other business leagues or organizations. Hrblockfreefile Civic leagues and associations. Hrblockfreefile Communist organizations. Hrblockfreefile Country clubs and other social clubs. Hrblockfreefile Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Hrblockfreefile (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Hrblockfreefile ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Hrblockfreefile Homeowners' associations. Hrblockfreefile Labor unions. Hrblockfreefile 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). Hrblockfreefile See Publication 529, Miscellaneous Deductions. Hrblockfreefile Political organizations and candidates. Hrblockfreefile 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. Hrblockfreefile See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Hrblockfreefile These contributions include the following. Hrblockfreefile Contributions for lobbying. Hrblockfreefile This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Hrblockfreefile Contributions to a retirement home for room, board, maintenance, or admittance. Hrblockfreefile Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Hrblockfreefile Costs of raffles, bingo, lottery, etc. Hrblockfreefile 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. Hrblockfreefile For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Hrblockfreefile Dues to fraternal orders and similar groups. Hrblockfreefile However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Hrblockfreefile Tuition, or amounts you pay instead of tuition. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile ” Contributions connected with split-dollar insurance arrangements. Hrblockfreefile 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. Hrblockfreefile Example. Hrblockfreefile You donate money to a charitable organization. Hrblockfreefile The charity uses the money to purchase a cash value life insurance policy. Hrblockfreefile The beneficiaries under the insurance policy include members of your family. Hrblockfreefile Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Hrblockfreefile 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. Hrblockfreefile You must have been at least age 70½ when the distribution was made. Hrblockfreefile Your total QCDs for the year cannot be more than $100,000. Hrblockfreefile If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Hrblockfreefile See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Hrblockfreefile 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. Hrblockfreefile Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Hrblockfreefile 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. Hrblockfreefile Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Hrblockfreefile However, you may be able to claim a tax credit for these expenses. Hrblockfreefile Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Hrblockfreefile See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Hrblockfreefile You also may be able to claim an exemption for the child. Hrblockfreefile See Exemptions for Dependents in Publication 501 for more information. Hrblockfreefile Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Hrblockfreefile But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Hrblockfreefile See Deductions Subject to the 2% Limit in Publication 529 for more information. Hrblockfreefile 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. Hrblockfreefile There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Hrblockfreefile 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. Hrblockfreefile For details, see Internal Revenue Code section 170(f)(18). Hrblockfreefile Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Hrblockfreefile For details, see Partial Interest in Property under Contributions of Property, later. Hrblockfreefile 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. Hrblockfreefile However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Hrblockfreefile See Giving Property That Has Increased in Value , later. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile These special rules are described next. Hrblockfreefile 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. Hrblockfreefile Exception. Hrblockfreefile   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. Hrblockfreefile Household items. Hrblockfreefile   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Hrblockfreefile   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Hrblockfreefile Fair market value. Hrblockfreefile   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Hrblockfreefile Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Hrblockfreefile 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. Hrblockfreefile Deduction more than $500. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile Form 1098-C. Hrblockfreefile   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. Hrblockfreefile The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Hrblockfreefile   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Hrblockfreefile S. Hrblockfreefile 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. Hrblockfreefile   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Hrblockfreefile    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Hrblockfreefile But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Hrblockfreefile Filing deadline approaching and still no Form 1098-C. Hrblockfreefile   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Hrblockfreefile Request an automatic 6-month extension of time to file your return. Hrblockfreefile You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Hrblockfreefile S. Hrblockfreefile Individual Income Tax Return. Hrblockfreefile For more information, see the instructions for Form 4868. Hrblockfreefile File the return on time without claiming the deduction for the qualified vehicle. Hrblockfreefile After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Hrblockfreefile S. Hrblockfreefile Individual Income Tax Return, claiming the deduction. Hrblockfreefile Attach Copy B of Form 1098-C (or other statement) to the amended return. Hrblockfreefile Exceptions. Hrblockfreefile   There are two exceptions to the rules just described for deductions of more than $500. Hrblockfreefile Exception 1—vehicle used or improved by organization. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile The Form 1098-C (or other statement) will show whether this exception applies. Hrblockfreefile    Exception 2—vehicle given or sold to needy individual. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile The Form 1098-C (or other statement) will show whether this exception applies. Hrblockfreefile   This exception does not apply if the organization sells the vehicle at auction. Hrblockfreefile In that case, you cannot deduct the vehicle's fair market value. Hrblockfreefile Example. Hrblockfreefile Anita donates a used car to a qualified organization. Hrblockfreefile She bought it 3 years ago for $9,000. Hrblockfreefile A used car guide shows the fair market value for this type of car is $6,000. Hrblockfreefile However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Hrblockfreefile Neither exception 1 nor exception 2 applies. Hrblockfreefile If Anita itemizes her deductions, she can deduct $2,900 for her donation. Hrblockfreefile She must attach Form 1098-C and Form 8283 to her return. Hrblockfreefile Deduction $500 or less. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile Fair market value. Hrblockfreefile   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Hrblockfreefile Donations of inventory. Hrblockfreefile   The vehicle donation rules just described do not apply to donations of inventory. Hrblockfreefile 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. Hrblockfreefile See Inventory , later. Hrblockfreefile 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. Hrblockfreefile This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Hrblockfreefile Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Hrblockfreefile Your basis does not include transportation or travel costs. Hrblockfreefile It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Hrblockfreefile In addition, it does not include the value of your time. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile This prevents you from deducting the same amount as both investment interest and a charitable contribution. Hrblockfreefile 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. Hrblockfreefile 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). Hrblockfreefile For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Hrblockfreefile Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Hrblockfreefile Right to use property. Hrblockfreefile   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Hrblockfreefile Example 1. Hrblockfreefile You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Hrblockfreefile Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Hrblockfreefile Example 2. Hrblockfreefile Mandy White owns a vacation home at the beach that she sometimes rents to others. Hrblockfreefile For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Hrblockfreefile 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. Hrblockfreefile Mandy cannot claim a deduction because of the partial interest rule. Hrblockfreefile Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Hrblockfreefile See Contributions From Which You Benefit , earlier. Hrblockfreefile Exceptions. Hrblockfreefile   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Hrblockfreefile A remainder interest in your personal home or farm. Hrblockfreefile A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Hrblockfreefile Example. Hrblockfreefile You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Hrblockfreefile You can deduct the value of the remainder interest. Hrblockfreefile An undivided part of your entire interest. Hrblockfreefile 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. Hrblockfreefile But see Fractional Interest in Tangible Personal Property , later. Hrblockfreefile Example. Hrblockfreefile You contribute voting stock to a qualified organization but keep the right to vote the stock. Hrblockfreefile The right to vote is a substantial right in the stock. Hrblockfreefile You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Hrblockfreefile A partial interest that would be deductible if transferred to certain types of trusts. Hrblockfreefile A qualified conservation contribution (defined later). Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile Tangible personal property is defined later under Future Interest in Tangible Personal Property . Hrblockfreefile A fractional interest in property is an undivided portion of your entire interest in the property. Hrblockfreefile Example. Hrblockfreefile 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. Hrblockfreefile Recapture of deduction. Hrblockfreefile   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Hrblockfreefile You contributed a fractional interest in tangible personal property after August 17, 2006. Hrblockfreefile 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. Hrblockfreefile   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. Hrblockfreefile Additional tax. Hrblockfreefile   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Hrblockfreefile 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. Hrblockfreefile Qualified organization. Hrblockfreefile   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. Hrblockfreefile The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Hrblockfreefile   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. Hrblockfreefile Qualified real property interest. Hrblockfreefile   This is any of the following interests in real property. Hrblockfreefile 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). Hrblockfreefile A remainder interest. Hrblockfreefile A restriction (granted in perpetuity) on the use that may be made of the real property. Hrblockfreefile Conservation purposes. Hrblockfreefile   Your contribution must be made only for one of the following conservation purposes. Hrblockfreefile Preserving land areas for outdoor recreation by, or for the education of, the general public. Hrblockfreefile Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Hrblockfreefile Preserving open space, including farmland and forest land, if it yields a significant public benefit. Hrblockfreefile 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. Hrblockfreefile Preserving a historically important land area or a certified historic structure. Hrblockfreefile Building in registered historic district. Hrblockfreefile   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. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile   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. Hrblockfreefile For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Hrblockfreefile   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Hrblockfreefile See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Hrblockfreefile 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). Hrblockfreefile See Deductions Subject to the 2% Limit in Publication 529 for more information. Hrblockfreefile More information. Hrblockfreefile   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Hrblockfreefile For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Hrblockfreefile For more information about qualified conservation contributions, see Regulations section 1. Hrblockfreefile 170A-14. Hrblockfreefile 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. Hrblockfreefile But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Hrblockfreefile Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Hrblockfreefile 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. Hrblockfreefile Tangible personal property. Hrblockfreefile   This is any property, other than land or buildings, that can be seen or touched. Hrblockfreefile It includes furniture, books, jewelry, paintings, and cars. Hrblockfreefile Future interest. Hrblockfreefile   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. Hrblockfreefile Example. Hrblockfreefile You own an antique car that you contribute to a museum. Hrblockfreefile You give up ownership, but retain the right to keep the car in your garage with your personal collection. Hrblockfreefile Because you keep an interest in the property, you cannot deduct the contribution. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile 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. Hrblockfreefile You must remove the amount of your charitable contribution deduction from your opening inventory. Hrblockfreefile It is not part of the cost of goods sold. Hrblockfreefile 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. Hrblockfreefile Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Hrblockfreefile For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Hrblockfreefile A special rule applies to certain donations of food inventory. Hrblockfreefile See Food Inventory, later. Hrblockfreefile 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. Hrblockfreefile Intellectual property means any of the following: Patents. Hrblockfreefile Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Hrblockfreefile Trademarks. Hrblockfreefile Trade names. Hrblockfreefile Trade secrets. Hrblockfreefile Know-how. Hrblockfreefile Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Hrblockfreefile Other similar property or applications or registrations of such property. Hrblockfreefile Additional deduction based on income. Hrblockfreefile   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. Hrblockfreefile   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. Hrblockfreefile In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Hrblockfreefile 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. Hrblockfreefile   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. Hrblockfreefile The additional deductions cannot be taken for intellectual property donated to certain private foundations. Hrblockfreefile 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. Hrblockfreefile   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. Hrblockfreefile   The organization is required to file an information return showing the income from the property, with a copy to you. Hrblockfreefile This is done on Form 8899, Notice of Income From Donated Intellectual Property. Hrblockfreefile Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Hrblockfreefile Publication 561 contains a more complete discussion. Hrblockfreefile 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. Hrblockfreefile Used clothing. Hrblockfreefile   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Hrblockfreefile There are no fixed formulas or methods for finding the value of items of clothing. Hrblockfreefile   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. Hrblockfreefile      Also see Clothing and Household Items , earlier. Hrblockfreefile Example. Hrblockfreefile    Kristin donated a coat to a thrift store operated by her church. Hrblockfreefile She paid $300 for the coat 3 years ago. Hrblockfreefile Similar coats in the thrift store sell for $50. Hrblockfreefile The fair market value of the coat is $50. Hrblockfreefile Kristin's donation is limited to $50. Hrblockfreefile Household items. Hrblockfreefile   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Hrblockfreefile These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Hrblockfreefile For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Hrblockfreefile   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Hrblockfreefile Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Hrblockfreefile Do not include any of this evidence with your tax return. Hrblockfreefile   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. Hrblockfreefile   Also see Clothing and Household Items , earlier. Hrblockfreefile Cars, boats, and airplanes. Hrblockfreefile   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Hrblockfreefile Boats. Hrblockfreefile   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. Hrblockfreefile Cars. Hrblockfreefile   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. Hrblockfreefile The guides may be published monthly or seasonally, and for different regions of the country. Hrblockfreefile These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Hrblockfreefile The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Hrblockfreefile But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Hrblockfreefile   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Hrblockfreefile You can also find used car pricing information on the Internet. Hrblockfreefile   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. Hrblockfreefile However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Hrblockfreefile 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. Hrblockfreefile Example. Hrblockfreefile You donate a used car in poor condition to a local high school for use by students studying car repair. Hrblockfreefile A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Hrblockfreefile However, the guide shows the price for a private party sale of the car is only $750. Hrblockfreefile The fair market value of the car is considered to be $750. Hrblockfreefile Large quantities. Hrblockfreefile   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. Hrblockfreefile Example. Hrblockfreefile You purchase 500 bibles for $1,000. Hrblockfreefile The person who sells them to you says the retail value of these bibles is $3,000. Hrblockfreefile 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. Hrblockfreefile Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer
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Prime Contract Outreach Information

The IRS Small Business Program Office from time to time hosts a Prime Contract Network Opportunity Session. The purpose of these events are to assist small businesses in meeting with the IRS Prime and Alliance partners to discuss potential subcontracting opportunities available under the IRS Prime Systems Integration Contract, TIRNO-99-D-00001. The contractor awarded this contract was Computer Sciences Corporation. Their Prime Alliance partners are IBM Corporation, Unisys Corporation, SAIC, Northrop Grumman Information Technology, and BearingPoint. More information on the contract itself can be found at http://www.irs.gov. Click on Business Opportunities, then click IRS Procurement, click Contracts, and then scroll down to IRS Prime Contract Network Opportunity Session.

At this time and in the foreseeable future, all work done under the IRS Prime Contract is being performed in the Washington, DC metro area.

Briefings from the IRS Prime Contractor and its Alliance partners can be found below. The briefing charts detail what each of the companies are working on and what type of subcontracting opportunities are available.

Page Last Reviewed or Updated: 16-Apr-2013

The Hrblockfreefile

Hrblockfreefile Publication 527 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSale of main home used as rental property. Hrblockfreefile Tax-free exchange of rental property occasionally used for personal purposes. Hrblockfreefile Ordering forms and publications. Hrblockfreefile Tax questions. Hrblockfreefile Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to www. Hrblockfreefile irs. Hrblockfreefile gov/pub527. Hrblockfreefile What's New Net Investment Income Tax (NIIT). Hrblockfreefile  Beginning in 2013, you may be subject to the Net Investment Income Tax (NIIT). Hrblockfreefile NIIT is a 3. Hrblockfreefile 8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. Hrblockfreefile Net investment income may include rental income and other income from passive activities. Hrblockfreefile Use Form 8960, Net Investment Income Tax, to figure this tax. Hrblockfreefile For more information on NIIT, go to IRS. Hrblockfreefile gov and enter “Net Investment Income Tax” in the search box. Hrblockfreefile Reminders Photographs of missing children. Hrblockfreefile  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Hrblockfreefile Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Hrblockfreefile You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Hrblockfreefile Introduction Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. Hrblockfreefile In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your return. Hrblockfreefile First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. Hrblockfreefile We will look at types of income and when each is reported, and at types of expenses and which are deductible. Hrblockfreefile Chapter 2 discusses depreciation as it applies to your rental real estate activity—what property can be depreciated and how to figure it. Hrblockfreefile Chapter 3 covers the actual reporting of your rental income and deductions, including casualties and thefts, limitations on losses, and claiming the correct amount of depreciation. Hrblockfreefile Special rental situations are grouped together in chapter 4. Hrblockfreefile These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental activity. Hrblockfreefile Finally, in chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation home. Hrblockfreefile Sale or exchange of rental property. Hrblockfreefile   For information on how to figure and report any gain or loss from the sale, exchange or other disposition of your rental property, see Publication 544, Sales and Other Dispositions of Assets. Hrblockfreefile Sale of main home used as rental property. Hrblockfreefile   For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication 523, Selling Your Home. Hrblockfreefile Tax-free exchange of rental property occasionally used for personal purposes. Hrblockfreefile   If you meet certain qualifying use standards, you may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. Hrblockfreefile   For information on the qualifying use standards, see Rev. Hrblockfreefile Proc. Hrblockfreefile 2008–16, 2008 IRB 547, at http://www. Hrblockfreefile irs. Hrblockfreefile gov/irb/2008-10_IRB/ar12. Hrblockfreefile html . Hrblockfreefile For more information on like-kind exchanges, see chapter 1 of Publication 544. Hrblockfreefile Comments and suggestions. Hrblockfreefile   We welcome your comments about this publication and your suggestions for future editions. Hrblockfreefile   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Hrblockfreefile NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Hrblockfreefile Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Hrblockfreefile   You can send your comments from www. Hrblockfreefile irs. Hrblockfreefile gov/formspubs/. Hrblockfreefile Click on “More Information” and then on “Comment on Tax Forms and Publications”. Hrblockfreefile   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Hrblockfreefile Ordering forms and publications. Hrblockfreefile   Visit www. Hrblockfreefile irs. Hrblockfreefile gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Hrblockfreefile Internal Revenue Service 1201 N. Hrblockfreefile Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Hrblockfreefile   If you have a tax question, check the information available on IRS. Hrblockfreefile gov or call 1-800-829-1040. Hrblockfreefile We cannot answer tax questions sent to either of the above addresses. Hrblockfreefile Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss   See chapter 6, How To Get Tax Help for information about getting these publications and forms. Hrblockfreefile Prev  Up  Next   Home   More Online Publications