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2010 Form 1040 Ez

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2010 Form 1040 Ez

2010 form 1040 ez Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. 2010 form 1040 ez Tax-deferred plans. 2010 form 1040 ez Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. 2010 form 1040 ez Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. 2010 form 1040 ez S. 2010 form 1040 ez Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. 2010 form 1040 ez That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. 2010 form 1040 ez Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. 2010 form 1040 ez Saving clause. 2010 form 1040 ez   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. 2010 form 1040 ez S. 2010 form 1040 ez citizens) or of the United States to tax its residents or citizens (including U. 2010 form 1040 ez S. 2010 form 1040 ez citizens who are residents of the foreign country). 2010 form 1040 ez This provision is known as the “saving clause. 2010 form 1040 ez ”   For example, an individual who is a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen and a resident of Canada may have dividend income from a U. 2010 form 1040 ez S. 2010 form 1040 ez corporation. 2010 form 1040 ez The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. 2010 form 1040 ez Even though a resident of Canada, the individual is a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen and the saving clause overrides the treaty article that limits the U. 2010 form 1040 ez S. 2010 form 1040 ez tax to 15%. 2010 form 1040 ez    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. 2010 form 1040 ez Treaty-based position. 2010 form 1040 ez   If you take the position that any U. 2010 form 1040 ez S. 2010 form 1040 ez tax is overruled or otherwise reduced by a U. 2010 form 1040 ez S. 2010 form 1040 ez treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. 2010 form 1040 ez Personal Services A U. 2010 form 1040 ez S. 2010 form 1040 ez citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. 2010 form 1040 ez Income from employment (Article XV). 2010 form 1040 ez   Income U. 2010 form 1040 ez S. 2010 form 1040 ez residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. 2010 form 1040 ez If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. 2010 form 1040 ez    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. 2010 form 1040 ez Example. 2010 form 1040 ez You are a U. 2010 form 1040 ez S. 2010 form 1040 ez resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. 2010 form 1040 ez During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. 2010 form 1040 ez Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. 2010 form 1040 ez Pay received by a U. 2010 form 1040 ez S. 2010 form 1040 ez resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. 2010 form 1040 ez S. 2010 form 1040 ez resident is exempt from Canadian tax. 2010 form 1040 ez Income from self-employment (Article VII). 2010 form 1040 ez   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. 2010 form 1040 ez This income is treated as business profits, and deductions similar to those allowed under U. 2010 form 1040 ez S. 2010 form 1040 ez law are allowable. 2010 form 1040 ez   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. 2010 form 1040 ez The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. 2010 form 1040 ez   You may be considered to have a permanent establishment if you meet certain conditions. 2010 form 1040 ez For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). 2010 form 1040 ez Public entertainers (Article XVI). 2010 form 1040 ez   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. 2010 form 1040 ez However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. 2010 form 1040 ez Compensation paid by the U. 2010 form 1040 ez S. 2010 form 1040 ez Government (Article XIX). 2010 form 1040 ez   Wages, salaries, and similar income (other than pensions) paid to a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. 2010 form 1040 ez   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. 2010 form 1040 ez Students and apprentices (Article XX). 2010 form 1040 ez   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. 2010 form 1040 ez The recipient must be or must have been a U. 2010 form 1040 ez S. 2010 form 1040 ez resident immediately before visiting Canada. 2010 form 1040 ez   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. 2010 form 1040 ez Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. 2010 form 1040 ez S. 2010 form 1040 ez residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). 2010 form 1040 ez Canadian pensions and annuities paid to U. 2010 form 1040 ez S. 2010 form 1040 ez residents may be taxed by the United States, but the amount of any pension included in income for U. 2010 form 1040 ez S. 2010 form 1040 ez tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. 2010 form 1040 ez Pensions. 2010 form 1040 ez   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. 2010 form 1040 ez It includes pensions paid by private employers and the government for services rendered. 2010 form 1040 ez   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. 2010 form 1040 ez   Pensions do not include social security benefits. 2010 form 1040 ez Roth IRAs. 2010 form 1040 ez   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. 2010 form 1040 ez S. 2010 form 1040 ez tax if paid to a U. 2010 form 1040 ez S. 2010 form 1040 ez resident. 2010 form 1040 ez In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. 2010 form 1040 ez However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. 2010 form 1040 ez Tax-deferred plans. 2010 form 1040 ez   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. 2010 form 1040 ez S. 2010 form 1040 ez tax, even if it is not distributed. 2010 form 1040 ez However, a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen or resident can elect to defer U. 2010 form 1040 ez S. 2010 form 1040 ez tax on income from the plan until the income is distributed. 2010 form 1040 ez Form 8891 is used to make the election. 2010 form 1040 ez Annuities. 2010 form 1040 ez    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). 2010 form 1040 ez Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. 2010 form 1040 ez Special rules. 2010 form 1040 ez    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. 2010 form 1040 ez Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. 2010 form 1040 ez Social security benefits. 2010 form 1040 ez   U. 2010 form 1040 ez S. 2010 form 1040 ez social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. 2010 form 1040 ez Alimony. 2010 form 1040 ez   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. 2010 form 1040 ez S. 2010 form 1040 ez residents are exempt from Canadian tax. 2010 form 1040 ez For purposes of U. 2010 form 1040 ez S. 2010 form 1040 ez tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. 2010 form 1040 ez Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. 2010 form 1040 ez Dividends (Article X). 2010 form 1040 ez   For Canadian source dividends received by U. 2010 form 1040 ez S. 2010 form 1040 ez residents, the Canadian income tax generally may not be more than 15%. 2010 form 1040 ez   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. 2010 form 1040 ez However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. 2010 form 1040 ez   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. 2010 form 1040 ez Interest (Article XI). 2010 form 1040 ez   Generally, Canadian source interest received by U. 2010 form 1040 ez S. 2010 form 1040 ez residents is exempt from Canadian income tax. 2010 form 1040 ez   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. 2010 form 1040 ez Gains from the sale of property (Article XIII). 2010 form 1040 ez   Generally, gains from the sale of personal property by a U. 2010 form 1040 ez S. 2010 form 1040 ez resident having no permanent establishment in Canada are exempt from Canadian income tax. 2010 form 1040 ez However, the exemption from Canadian tax does not apply to gains realized by U. 2010 form 1040 ez S. 2010 form 1040 ez residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. 2010 form 1040 ez   If the property subject to Canadian tax is a capital asset and was owned by the U. 2010 form 1040 ez S. 2010 form 1040 ez resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. 2010 form 1040 ez Royalties (Article XII). 2010 form 1040 ez   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. 2010 form 1040 ez   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. 2010 form 1040 ez   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. 2010 form 1040 ez Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. 2010 form 1040 ez Gambling losses. 2010 form 1040 ez   Canadian residents may deduct gambling losses in the U. 2010 form 1040 ez S. 2010 form 1040 ez against gambling winnings in the U. 2010 form 1040 ez S. 2010 form 1040 ez in the same manner as a U. 2010 form 1040 ez S. 2010 form 1040 ez resident. 2010 form 1040 ez Charitable Contributions United States income tax return. 2010 form 1040 ez   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. 2010 form 1040 ez Besides being subject to the overall limits applicable to all your charitable contributions under U. 2010 form 1040 ez S. 2010 form 1040 ez tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. 2010 form 1040 ez S. 2010 form 1040 ez percentage limits on charitable contributions, applied to your Canadian source income. 2010 form 1040 ez If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. 2010 form 1040 ez Example. 2010 form 1040 ez You are a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen living in Canada. 2010 form 1040 ez You have both U. 2010 form 1040 ez S. 2010 form 1040 ez and Canadian source income. 2010 form 1040 ez During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. 2010 form 1040 ez S. 2010 form 1040 ez tax law if they were U. 2010 form 1040 ez S. 2010 form 1040 ez organizations. 2010 form 1040 ez To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. 2010 form 1040 ez S. 2010 form 1040 ez income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. 2010 form 1040 ez S. 2010 form 1040 ez income tax law. 2010 form 1040 ez Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. 2010 form 1040 ez S. 2010 form 1040 ez income tax law. 2010 form 1040 ez The appropriate percentage limit for U. 2010 form 1040 ez S. 2010 form 1040 ez tax purposes is applied to your total adjusted gross income from all sources. 2010 form 1040 ez Qualified charities. 2010 form 1040 ez   These Canadian organizations must meet the qualifications that a U. 2010 form 1040 ez S. 2010 form 1040 ez charitable organization must meet under U. 2010 form 1040 ez S. 2010 form 1040 ez tax law. 2010 form 1040 ez Usually an organization will notify you if it qualifies. 2010 form 1040 ez For further information on charitable contributions and the U. 2010 form 1040 ez S. 2010 form 1040 ez percentage limits, see Publication 526, Charitable Contributions. 2010 form 1040 ez Canadian income tax return. 2010 form 1040 ez   Under certain conditions, contributions to qualified U. 2010 form 1040 ez S. 2010 form 1040 ez charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. 2010 form 1040 ez Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. 2010 form 1040 ez In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. 2010 form 1040 ez For detailed discussions of the U. 2010 form 1040 ez S. 2010 form 1040 ez income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. 2010 form 1040 ez See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. 2010 form 1040 ez S. 2010 form 1040 ez citizens residing in Canada. 2010 form 1040 ez Competent Authority Assistance Under Article XXVI, a U. 2010 form 1040 ez S. 2010 form 1040 ez citizen or resident may request assistance from the U. 2010 form 1040 ez S. 2010 form 1040 ez competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. 2010 form 1040 ez The U. 2010 form 1040 ez S. 2010 form 1040 ez competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. 2010 form 1040 ez If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. 2010 form 1040 ez It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. 2010 form 1040 ez This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. 2010 form 1040 ez For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. 2010 form 1040 ez irs. 2010 form 1040 ez gov/irb/2006-49_IRB/ar13. 2010 form 1040 ez html. 2010 form 1040 ez The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. 2010 form 1040 ez , NW Routing: MA3-322A Washington, D. 2010 form 1040 ez C. 2010 form 1040 ez 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. 2010 form 1040 ez S. 2010 form 1040 ez taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. 2010 form 1040 ez This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. 2010 form 1040 ez For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. 2010 form 1040 ez Attach your protective claim to your request for competent authority assistance. 2010 form 1040 ez Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. 2010 form 1040 ez How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. 2010 form 1040 ez Text of Treaty You can get the text of the U. 2010 form 1040 ez S. 2010 form 1040 ez —Canada income tax treaty from: Superintendent of Documents U. 2010 form 1040 ez S. 2010 form 1040 ez Government Printing Office P. 2010 form 1040 ez O. 2010 form 1040 ez Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. 2010 form 1040 ez gov. 2010 form 1040 ez U. 2010 form 1040 ez S. 2010 form 1040 ez Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. 2010 form 1040 ez To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. 2010 form 1040 ez S. 2010 form 1040 ez Embassy or consulate. 2010 form 1040 ez Mail. 2010 form 1040 ez For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. 2010 form 1040 ez You can call the IRS for help at (267) 941-1000 (not a toll-free call). 2010 form 1040 ez Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. 2010 form 1040 ez The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. 2010 form 1040 ez S. 2010 form 1040 ez ) or on the Internet at www. 2010 form 1040 ez cra-arc. 2010 form 1040 ez gc. 2010 form 1040 ez ca. 2010 form 1040 ez Prev  Up  Next   Home   More Online Publications
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Letter 2789C Frequently Asked Questions (FAQs)

What is the letter telling me?

The letter is a response to your oral or written request for information on the annual reminder notice, required by law, informing you that you still have a balance due with us that you received.  It also explains that penalty and interest continues to accrue until the balance is full paid.

What do I have to do?

Pay the balance due in the letter as soon as possible.

How much time do I have?

The letter provides you the full pay amount to a specified date.

Who should I contact?

If you have any questions about this letter, call us at the number printed in the letter. The person who answers the phone will assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this letter, call us immediately at the number included. We will do our best to help you.  If you have called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

Page Last Reviewed or Updated: 30-Jan-2014

The 2010 Form 1040 Ez

2010 form 1040 ez 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. 2010 form 1040 ez Text message. 2010 form 1040 ez Credit card. 2010 form 1040 ez Pay-by-phone account. 2010 form 1040 ez Stock certificate. 2010 form 1040 ez Promissory note. 2010 form 1040 ez Option. 2010 form 1040 ez Borrowed funds. 2010 form 1040 ez Conditional gift. 2010 form 1040 ez 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. 2010 form 1040 ez Total deduction over $500. 2010 form 1040 ez Deduction over $5,000 for one item. 2010 form 1040 ez Vehicle donations. 2010 form 1040 ez Clothing and household items not in good used condition. 2010 form 1040 ez Easement on building in historic district. 2010 form 1040 ez Deduction over $500,000. 2010 form 1040 ez 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. 2010 form 1040 ez Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. 2010 form 1040 ez How to check whether an organization can receive deductible charitable contributions. 2010 form 1040 ez   You can ask any organization whether it is a qualified organization, and most will be able to tell you. 2010 form 1040 ez Or go to IRS. 2010 form 1040 ez gov. 2010 form 1040 ez Click on “Tools” and then on “Exempt Organizations Select Check” (www. 2010 form 1040 ez irs. 2010 form 1040 ez gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). 2010 form 1040 ez This online tool will enable you to search for qualified organizations. 2010 form 1040 ez You can also call the IRS to find out if an organization is qualified. 2010 form 1040 ez Call 1-877-829-5500. 2010 form 1040 ez 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. 2010 form 1040 ez Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. 2010 form 1040 ez gsa. 2010 form 1040 ez gov/fedrelay. 2010 form 1040 ez Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. 2010 form 1040 ez 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). 2010 form 1040 ez 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. 2010 form 1040 ez Certain organizations that foster national or international amateur sports competition also qualify. 2010 form 1040 ez War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). 2010 form 1040 ez Domestic fraternal societies, orders, and associations operating under the lodge system. 2010 form 1040 ez (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. 2010 form 1040 ez ) Certain nonprofit cemetery companies or corporations. 2010 form 1040 ez (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. 2010 form 1040 ez ) The United States or any state, the District of Columbia, a U. 2010 form 1040 ez S. 2010 form 1040 ez possession (including Puerto Rico), a political subdivision of a state or U. 2010 form 1040 ez S. 2010 form 1040 ez possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. 2010 form 1040 ez (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. 2010 form 1040 ez ) Example 1. 2010 form 1040 ez You contribute cash to your city's police department to be used as a reward for information about a crime. 2010 form 1040 ez The city police department is a qualified organization, and your contribution is for a public purpose. 2010 form 1040 ez You can deduct your contribution. 2010 form 1040 ez Example 2. 2010 form 1040 ez You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. 2010 form 1040 ez Because the trust fund is part of the U. 2010 form 1040 ez S. 2010 form 1040 ez Government, you contributed to a qualified organization. 2010 form 1040 ez You can deduct your contribution. 2010 form 1040 ez Examples. 2010 form 1040 ez   The following list gives some examples of qualified organizations. 2010 form 1040 ez Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. 2010 form 1040 ez Most nonprofit charitable organizations such as the American Red Cross and the United Way. 2010 form 1040 ez Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. 2010 form 1040 ez 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. 2010 form 1040 ez 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 . 2010 form 1040 ez Nonprofit hospitals and medical research organizations. 2010 form 1040 ez Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. 2010 form 1040 ez Nonprofit volunteer fire companies. 2010 form 1040 ez Nonprofit organizations that develop and maintain public parks and recreation facilities. 2010 form 1040 ez Civil defense organizations. 2010 form 1040 ez Canadian charities. 2010 form 1040 ez   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. 2010 form 1040 ez To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. 2010 form 1040 ez See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. 2010 form 1040 ez Mexican charities. 2010 form 1040 ez   Under the U. 2010 form 1040 ez S. 2010 form 1040 ez -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. 2010 form 1040 ez S. 2010 form 1040 ez law. 2010 form 1040 ez To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. 2010 form 1040 ez The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. 2010 form 1040 ez Israeli charities. 2010 form 1040 ez   Under the U. 2010 form 1040 ez S. 2010 form 1040 ez -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. 2010 form 1040 ez S. 2010 form 1040 ez law. 2010 form 1040 ez To deduct your contribution to an Israeli charity, you must have income from sources in Israel. 2010 form 1040 ez The limits described in Limits on Deductions , later, apply. 2010 form 1040 ez The deduction is also limited to 25% of your adjusted gross income from Israeli sources. 2010 form 1040 ez Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. 2010 form 1040 ez 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. 2010 form 1040 ez The contributions must be made to a qualified organization and not set aside for use by a specific person. 2010 form 1040 ez 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. 2010 form 1040 ez See Contributions of Property , later. 2010 form 1040 ez 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. 2010 form 1040 ez In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. 2010 form 1040 ez See Limits on Deductions , later. 2010 form 1040 ez Table 1 in this publication gives examples of contributions you can and cannot deduct. 2010 form 1040 ez 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. 2010 form 1040 ez Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. 2010 form 1040 ez If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. 2010 form 1040 ez For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. 2010 form 1040 ez Example 1. 2010 form 1040 ez You pay $65 for a ticket to a dinner-dance at a church. 2010 form 1040 ez Your entire $65 payment goes to the church. 2010 form 1040 ez The ticket to the dinner-dance has a fair market value of $25. 2010 form 1040 ez When you buy your ticket, you know its value is less than your payment. 2010 form 1040 ez To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). 2010 form 1040 ez You can deduct $40 as a charitable contribution to the church. 2010 form 1040 ez Example 2. 2010 form 1040 ez At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. 2010 form 1040 ez The amount you pay is no more than the fair rental value. 2010 form 1040 ez You have not made a deductible charitable contribution. 2010 form 1040 ez Athletic events. 2010 form 1040 ez   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. 2010 form 1040 ez   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. 2010 form 1040 ez Subtract the price of the tickets from your payment. 2010 form 1040 ez You can deduct 80% of the remaining amount as a charitable contribution. 2010 form 1040 ez Example 1. 2010 form 1040 ez You pay $300 a year for membership in a university's athletic scholarship program. 2010 form 1040 ez 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. 2010 form 1040 ez You can deduct $240 (80% of $300) as a charitable contribution. 2010 form 1040 ez Example 2. 2010 form 1040 ez 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. 2010 form 1040 ez You must subtract the usual price of a ticket ($120) from your $300 payment. 2010 form 1040 ez The result is $180. 2010 form 1040 ez Your deductible charitable contribution is $144 (80% of $180). 2010 form 1040 ez Charity benefit events. 2010 form 1040 ez   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. 2010 form 1040 ez   If there is an established charge for the event, that charge is the value of your benefit. 2010 form 1040 ez If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. 2010 form 1040 ez Whether you use the tickets or other privileges has no effect on the amount you can deduct. 2010 form 1040 ez However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. 2010 form 1040 ez    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. 2010 form 1040 ez If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. 2010 form 1040 ez Example. 2010 form 1040 ez You pay $40 to see a special showing of a movie for the benefit of a qualified organization. 2010 form 1040 ez Printed on the ticket is “Contribution–$40. 2010 form 1040 ez ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). 2010 form 1040 ez Membership fees or dues. 2010 form 1040 ez   You may be able to deduct membership fees or dues you pay to a qualified organization. 2010 form 1040 ez However, you can deduct only the amount that is more than the value of the benefits you receive. 2010 form 1040 ez   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. 2010 form 1040 ez They are not qualified organizations. 2010 form 1040 ez Certain membership benefits can be disregarded. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez 20. 2010 form 1040 ez Token items. 2010 form 1040 ez   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. 2010 form 1040 ez You receive only a small item or other benefit of token value. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez Written statement. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez It must also give you a good faith estimate of the value of those goods or services. 2010 form 1040 ez   The organization can give you the statement either when it solicits or when it receives the payment from you. 2010 form 1040 ez Exception. 2010 form 1040 ez   An organization will not have to give you this statement if one of the following is true. 2010 form 1040 ez 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. 2010 form 1040 ez You receive only items whose value is not substantial as described under Token items , earlier. 2010 form 1040 ez You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. 2010 form 1040 ez Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. 2010 form 1040 ez 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. 2010 form 1040 ez You can deduct up to $50 a month for each full calendar month the student lives with you. 2010 form 1040 ez Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. 2010 form 1040 ez Qualified organization. 2010 form 1040 ez   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). 2010 form 1040 ez 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. 2010 form 1040 ez But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. 2010 form 1040 ez Relative. 2010 form 1040 ez   The term “relative” means any of the following persons. 2010 form 1040 ez Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). 2010 form 1040 ez A legally adopted child is considered your child. 2010 form 1040 ez Your brother, sister, half brother, half sister, stepbrother, or stepsister. 2010 form 1040 ez Your father, mother, grandparent, or other direct ancestor. 2010 form 1040 ez Your stepfather or stepmother. 2010 form 1040 ez A son or daughter of your brother or sister. 2010 form 1040 ez A brother or sister of your father or mother. 2010 form 1040 ez Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2010 form 1040 ez Dependent. 2010 form 1040 ez   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. 2010 form 1040 ez    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. 2010 form 1040 ez S. 2010 form 1040 ez residents and cannot be claimed as dependents. 2010 form 1040 ez Qualifying expenses. 2010 form 1040 ez   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. 2010 form 1040 ez Expenses that do not qualify. 2010 form 1040 ez   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. 2010 form 1040 ez Nor can you deduct general household expenses, such as taxes, insurance, and repairs. 2010 form 1040 ez Reimbursed expenses. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez Mutual exchange program. 2010 form 1040 ez   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. 2010 form 1040 ez Reporting expenses. 2010 form 1040 ez   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. 2010 form 1040 ez Out-of-Pocket Expenses in Giving Services Table 2. 2010 form 1040 ez Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. 2010 form 1040 ez All of the rules explained in this publication also apply. 2010 form 1040 ez See, in particular, Out-of-Pocket Expenses in Giving Services . 2010 form 1040 ez Question Answer I volunteer 6 hours a week in the office of a qualified organization. 2010 form 1040 ez The receptionist is paid $10 an hour for the same work. 2010 form 1040 ez Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. 2010 form 1040 ez  The office is 30 miles from my home. 2010 form 1040 ez 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. 2010 form 1040 ez If you do not want to figure your actual costs, you can deduct 14 cents for each mile. 2010 form 1040 ez I volunteer as a Red Cross nurse's aide at a hospital. 2010 form 1040 ez 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. 2010 form 1040 ez I pay a babysitter to watch my children while I volunteer for a qualified organization. 2010 form 1040 ez 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. 2010 form 1040 ez (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. 2010 form 1040 ez ) 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. 2010 form 1040 ez 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. 2010 form 1040 ez Table 2 contains questions and answers that apply to some individuals who volunteer their services. 2010 form 1040 ez Underprivileged youths selected by charity. 2010 form 1040 ez   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. 2010 form 1040 ez The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. 2010 form 1040 ez Your own similar expenses in accompanying the youths are not deductible. 2010 form 1040 ez Conventions. 2010 form 1040 ez   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. 2010 form 1040 ez However, see Travel , later. 2010 form 1040 ez   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. 2010 form 1040 ez You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. 2010 form 1040 ez   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. 2010 form 1040 ez You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. 2010 form 1040 ez Uniforms. 2010 form 1040 ez   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. 2010 form 1040 ez Foster parents. 2010 form 1040 ez   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. 2010 form 1040 ez A qualified organization must select the individuals you take into your home for foster care. 2010 form 1040 ez   You can deduct expenses that meet both of the following requirements. 2010 form 1040 ez They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. 2010 form 1040 ez They are incurred primarily to benefit the qualified organization. 2010 form 1040 ez   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. 2010 form 1040 ez For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. 2010 form 1040 ez Example. 2010 form 1040 ez You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. 2010 form 1040 ez Your unreimbursed expenses are not deductible as charitable contributions. 2010 form 1040 ez Church deacon. 2010 form 1040 ez   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. 2010 form 1040 ez 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. 2010 form 1040 ez Car expenses. 2010 form 1040 ez   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. 2010 form 1040 ez You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. 2010 form 1040 ez   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. 2010 form 1040 ez   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. 2010 form 1040 ez   You must keep reliable written records of your car expenses. 2010 form 1040 ez For more information, see Car expenses under Records To Keep, later. 2010 form 1040 ez Travel. 2010 form 1040 ez   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. 2010 form 1040 ez This applies whether you pay the expenses directly or indirectly. 2010 form 1040 ez You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. 2010 form 1040 ez   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez Example 1. 2010 form 1040 ez You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. 2010 form 1040 ez You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. 2010 form 1040 ez You participate in the activities of the group and enjoy your time with them. 2010 form 1040 ez You oversee the breaking of camp and you transport the group home. 2010 form 1040 ez You can deduct your travel expenses. 2010 form 1040 ez Example 2. 2010 form 1040 ez You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. 2010 form 1040 ez The project is sponsored by a charitable organization. 2010 form 1040 ez In most circumstances, you cannot deduct your expenses. 2010 form 1040 ez Example 3. 2010 form 1040 ez You work for several hours each morning on an archeological dig sponsored by a charitable organization. 2010 form 1040 ez The rest of the day is free for recreation and sightseeing. 2010 form 1040 ez You cannot take a charitable contribution deduction even though you work very hard during those few hours. 2010 form 1040 ez Example 4. 2010 form 1040 ez You spend the entire day attending a charitable organization's regional meeting as a chosen representative. 2010 form 1040 ez In the evening you go to the theater. 2010 form 1040 ez You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. 2010 form 1040 ez Daily allowance (per diem). 2010 form 1040 ez   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. 2010 form 1040 ez You may be able to deduct any necessary travel expenses that are more than the allowance. 2010 form 1040 ez Deductible travel expenses. 2010 form 1040 ez   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. 2010 form 1040 ez Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. 2010 form 1040 ez For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. 2010 form 1040 ez 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. 2010 form 1040 ez The deduction is limited to $10,000 a year. 2010 form 1040 ez 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. 2010 form 1040 ez Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. 2010 form 1040 ez 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. 2010 form 1040 ez You must keep records showing the time, place, date, amount, and nature of the expenses. 2010 form 1040 ez For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. 2010 form 1040 ez irs. 2010 form 1040 ez gov/pub/irs-irbs/irb06-47. 2010 form 1040 ez pdf. 2010 form 1040 ez Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. 2010 form 1040 ez 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. 2010 form 1040 ez Detailed discussions of these items follow. 2010 form 1040 ez Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. 2010 form 1040 ez Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. 2010 form 1040 ez Contributions to individuals who are needy or worthy. 2010 form 1040 ez You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. 2010 form 1040 ez 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. 2010 form 1040 ez Example. 2010 form 1040 ez You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. 2010 form 1040 ez However, you cannot deduct contributions earmarked for relief of a particular individual or family. 2010 form 1040 ez Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. 2010 form 1040 ez Expenses you paid for another person who provided services to a qualified organization. 2010 form 1040 ez Example. 2010 form 1040 ez Your son does missionary work. 2010 form 1040 ez You pay his expenses. 2010 form 1040 ez You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. 2010 form 1040 ez Payments to a hospital that are for a specific patient's care or for services for a specific patient. 2010 form 1040 ez You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. 2010 form 1040 ez Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. 2010 form 1040 ez 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. 2010 form 1040 ez Chambers of commerce and other business leagues or organizations. 2010 form 1040 ez Civic leagues and associations. 2010 form 1040 ez Communist organizations. 2010 form 1040 ez Country clubs and other social clubs. 2010 form 1040 ez Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. 2010 form 1040 ez (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. 2010 form 1040 ez ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. 2010 form 1040 ez Homeowners' associations. 2010 form 1040 ez Labor unions. 2010 form 1040 ez 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). 2010 form 1040 ez See Publication 529, Miscellaneous Deductions. 2010 form 1040 ez Political organizations and candidates. 2010 form 1040 ez 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. 2010 form 1040 ez See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. 2010 form 1040 ez These contributions include the following. 2010 form 1040 ez Contributions for lobbying. 2010 form 1040 ez This includes amounts you earmark for use in, or in connection with, influencing specific legislation. 2010 form 1040 ez Contributions to a retirement home for room, board, maintenance, or admittance. 2010 form 1040 ez Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. 2010 form 1040 ez Costs of raffles, bingo, lottery, etc. 2010 form 1040 ez 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. 2010 form 1040 ez For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. 2010 form 1040 ez Dues to fraternal orders and similar groups. 2010 form 1040 ez However, see Membership fees or dues under Contributions From Which You Benefit, earlier. 2010 form 1040 ez Tuition, or amounts you pay instead of tuition. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez ” Contributions connected with split-dollar insurance arrangements. 2010 form 1040 ez 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. 2010 form 1040 ez Example. 2010 form 1040 ez You donate money to a charitable organization. 2010 form 1040 ez The charity uses the money to purchase a cash value life insurance policy. 2010 form 1040 ez The beneficiaries under the insurance policy include members of your family. 2010 form 1040 ez Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. 2010 form 1040 ez 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. 2010 form 1040 ez You must have been at least age 70½ when the distribution was made. 2010 form 1040 ez Your total QCDs for the year cannot be more than $100,000. 2010 form 1040 ez If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. 2010 form 1040 ez See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. 2010 form 1040 ez 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. 2010 form 1040 ez Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. 2010 form 1040 ez 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. 2010 form 1040 ez Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. 2010 form 1040 ez However, you may be able to claim a tax credit for these expenses. 2010 form 1040 ez Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. 2010 form 1040 ez See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. 2010 form 1040 ez You also may be able to claim an exemption for the child. 2010 form 1040 ez See Exemptions for Dependents in Publication 501 for more information. 2010 form 1040 ez Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. 2010 form 1040 ez But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). 2010 form 1040 ez See Deductions Subject to the 2% Limit in Publication 529 for more information. 2010 form 1040 ez 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. 2010 form 1040 ez There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. 2010 form 1040 ez 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. 2010 form 1040 ez For details, see Internal Revenue Code section 170(f)(18). 2010 form 1040 ez Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. 2010 form 1040 ez For details, see Partial Interest in Property under Contributions of Property, later. 2010 form 1040 ez 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. 2010 form 1040 ez However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. 2010 form 1040 ez See Giving Property That Has Increased in Value , later. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez These special rules are described next. 2010 form 1040 ez 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. 2010 form 1040 ez Exception. 2010 form 1040 ez   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. 2010 form 1040 ez Household items. 2010 form 1040 ez   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. 2010 form 1040 ez   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. 2010 form 1040 ez Fair market value. 2010 form 1040 ez   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. 2010 form 1040 ez Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. 2010 form 1040 ez 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. 2010 form 1040 ez Deduction more than $500. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez Form 1098-C. 2010 form 1040 ez   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. 2010 form 1040 ez The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. 2010 form 1040 ez   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. 2010 form 1040 ez S. 2010 form 1040 ez 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. 2010 form 1040 ez   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. 2010 form 1040 ez    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. 2010 form 1040 ez But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. 2010 form 1040 ez Filing deadline approaching and still no Form 1098-C. 2010 form 1040 ez   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. 2010 form 1040 ez Request an automatic 6-month extension of time to file your return. 2010 form 1040 ez You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. 2010 form 1040 ez S. 2010 form 1040 ez Individual Income Tax Return. 2010 form 1040 ez For more information, see the instructions for Form 4868. 2010 form 1040 ez File the return on time without claiming the deduction for the qualified vehicle. 2010 form 1040 ez After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. 2010 form 1040 ez S. 2010 form 1040 ez Individual Income Tax Return, claiming the deduction. 2010 form 1040 ez Attach Copy B of Form 1098-C (or other statement) to the amended return. 2010 form 1040 ez Exceptions. 2010 form 1040 ez   There are two exceptions to the rules just described for deductions of more than $500. 2010 form 1040 ez Exception 1—vehicle used or improved by organization. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez The Form 1098-C (or other statement) will show whether this exception applies. 2010 form 1040 ez    Exception 2—vehicle given or sold to needy individual. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez The Form 1098-C (or other statement) will show whether this exception applies. 2010 form 1040 ez   This exception does not apply if the organization sells the vehicle at auction. 2010 form 1040 ez In that case, you cannot deduct the vehicle's fair market value. 2010 form 1040 ez Example. 2010 form 1040 ez Anita donates a used car to a qualified organization. 2010 form 1040 ez She bought it 3 years ago for $9,000. 2010 form 1040 ez A used car guide shows the fair market value for this type of car is $6,000. 2010 form 1040 ez However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. 2010 form 1040 ez Neither exception 1 nor exception 2 applies. 2010 form 1040 ez If Anita itemizes her deductions, she can deduct $2,900 for her donation. 2010 form 1040 ez She must attach Form 1098-C and Form 8283 to her return. 2010 form 1040 ez Deduction $500 or less. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez Fair market value. 2010 form 1040 ez   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. 2010 form 1040 ez Donations of inventory. 2010 form 1040 ez   The vehicle donation rules just described do not apply to donations of inventory. 2010 form 1040 ez 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. 2010 form 1040 ez See Inventory , later. 2010 form 1040 ez 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. 2010 form 1040 ez This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. 2010 form 1040 ez Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. 2010 form 1040 ez Your basis does not include transportation or travel costs. 2010 form 1040 ez It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. 2010 form 1040 ez In addition, it does not include the value of your time. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez This prevents you from deducting the same amount as both investment interest and a charitable contribution. 2010 form 1040 ez 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. 2010 form 1040 ez 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). 2010 form 1040 ez For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. 2010 form 1040 ez Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. 2010 form 1040 ez Right to use property. 2010 form 1040 ez   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. 2010 form 1040 ez Example 1. 2010 form 1040 ez You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. 2010 form 1040 ez Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. 2010 form 1040 ez Example 2. 2010 form 1040 ez Mandy White owns a vacation home at the beach that she sometimes rents to others. 2010 form 1040 ez For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. 2010 form 1040 ez 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. 2010 form 1040 ez Mandy cannot claim a deduction because of the partial interest rule. 2010 form 1040 ez Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. 2010 form 1040 ez See Contributions From Which You Benefit , earlier. 2010 form 1040 ez Exceptions. 2010 form 1040 ez   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. 2010 form 1040 ez A remainder interest in your personal home or farm. 2010 form 1040 ez A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. 2010 form 1040 ez Example. 2010 form 1040 ez You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. 2010 form 1040 ez You can deduct the value of the remainder interest. 2010 form 1040 ez An undivided part of your entire interest. 2010 form 1040 ez 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. 2010 form 1040 ez But see Fractional Interest in Tangible Personal Property , later. 2010 form 1040 ez Example. 2010 form 1040 ez You contribute voting stock to a qualified organization but keep the right to vote the stock. 2010 form 1040 ez The right to vote is a substantial right in the stock. 2010 form 1040 ez You have not contributed an undivided part of your entire interest and cannot deduct your contribution. 2010 form 1040 ez A partial interest that would be deductible if transferred to certain types of trusts. 2010 form 1040 ez A qualified conservation contribution (defined later). 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez Tangible personal property is defined later under Future Interest in Tangible Personal Property . 2010 form 1040 ez A fractional interest in property is an undivided portion of your entire interest in the property. 2010 form 1040 ez Example. 2010 form 1040 ez 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. 2010 form 1040 ez Recapture of deduction. 2010 form 1040 ez   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. 2010 form 1040 ez You contributed a fractional interest in tangible personal property after August 17, 2006. 2010 form 1040 ez 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. 2010 form 1040 ez   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. 2010 form 1040 ez Additional tax. 2010 form 1040 ez   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. 2010 form 1040 ez 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. 2010 form 1040 ez Qualified organization. 2010 form 1040 ez   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. 2010 form 1040 ez The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. 2010 form 1040 ez   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. 2010 form 1040 ez Qualified real property interest. 2010 form 1040 ez   This is any of the following interests in real property. 2010 form 1040 ez 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). 2010 form 1040 ez A remainder interest. 2010 form 1040 ez A restriction (granted in perpetuity) on the use that may be made of the real property. 2010 form 1040 ez Conservation purposes. 2010 form 1040 ez   Your contribution must be made only for one of the following conservation purposes. 2010 form 1040 ez Preserving land areas for outdoor recreation by, or for the education of, the general public. 2010 form 1040 ez Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. 2010 form 1040 ez Preserving open space, including farmland and forest land, if it yields a significant public benefit. 2010 form 1040 ez 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. 2010 form 1040 ez Preserving a historically important land area or a certified historic structure. 2010 form 1040 ez Building in registered historic district. 2010 form 1040 ez   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. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez   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. 2010 form 1040 ez For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). 2010 form 1040 ez   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. 2010 form 1040 ez See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. 2010 form 1040 ez 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). 2010 form 1040 ez See Deductions Subject to the 2% Limit in Publication 529 for more information. 2010 form 1040 ez More information. 2010 form 1040 ez   For information about determining the fair market value of qualified conservation contributions, see Publication 561. 2010 form 1040 ez For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. 2010 form 1040 ez For more information about qualified conservation contributions, see Regulations section 1. 2010 form 1040 ez 170A-14. 2010 form 1040 ez 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. 2010 form 1040 ez But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. 2010 form 1040 ez Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. 2010 form 1040 ez 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. 2010 form 1040 ez Tangible personal property. 2010 form 1040 ez   This is any property, other than land or buildings, that can be seen or touched. 2010 form 1040 ez It includes furniture, books, jewelry, paintings, and cars. 2010 form 1040 ez Future interest. 2010 form 1040 ez   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. 2010 form 1040 ez Example. 2010 form 1040 ez You own an antique car that you contribute to a museum. 2010 form 1040 ez You give up ownership, but retain the right to keep the car in your garage with your personal collection. 2010 form 1040 ez Because you keep an interest in the property, you cannot deduct the contribution. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez 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. 2010 form 1040 ez You must remove the amount of your charitable contribution deduction from your opening inventory. 2010 form 1040 ez It is not part of the cost of goods sold. 2010 form 1040 ez 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. 2010 form 1040 ez Treat the inventory's cost as you would ordinarily treat it under your method of accounting. 2010 form 1040 ez For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. 2010 form 1040 ez A special rule applies to certain donations of food inventory. 2010 form 1040 ez See Food Inventory, later. 2010 form 1040 ez 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. 2010 form 1040 ez Intellectual property means any of the following: Patents. 2010 form 1040 ez Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). 2010 form 1040 ez Trademarks. 2010 form 1040 ez Trade names. 2010 form 1040 ez Trade secrets. 2010 form 1040 ez Know-how. 2010 form 1040 ez Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). 2010 form 1040 ez Other similar property or applications or registrations of such property. 2010 form 1040 ez Additional deduction based on income. 2010 form 1040 ez   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. 2010 form 1040 ez   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. 2010 form 1040 ez In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. 2010 form 1040 ez 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. 2010 form 1040 ez   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. 2010 form 1040 ez The additional deductions cannot be taken for intellectual property donated to certain private foundations. 2010 form 1040 ez 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. 2010 form 1040 ez   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. 2010 form 1040 ez   The organization is required to file an information return showing the income from the property, with a copy to you. 2010 form 1040 ez This is done on Form 8899, Notice of Income From Donated Intellectual Property. 2010 form 1040 ez Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. 2010 form 1040 ez Publication 561 contains a more complete discussion. 2010 form 1040 ez 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. 2010 form 1040 ez Used clothing. 2010 form 1040 ez   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. 2010 form 1040 ez There are no fixed formulas or methods for finding the value of items of clothing. 2010 form 1040 ez   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. 2010 form 1040 ez      Also see Clothing and Household Items , earlier. 2010 form 1040 ez Example. 2010 form 1040 ez    Kristin donated a coat to a thrift store operated by her church. 2010 form 1040 ez She paid $300 for the coat 3 years ago. 2010 form 1040 ez Similar coats in the thrift store sell for $50. 2010 form 1040 ez The fair market value of the coat is $50. 2010 form 1040 ez Kristin's donation is limited to $50. 2010 form 1040 ez Household items. 2010 form 1040 ez   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. 2010 form 1040 ez These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. 2010 form 1040 ez For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. 2010 form 1040 ez   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. 2010 form 1040 ez Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. 2010 form 1040 ez Do not include any of this evidence with your tax return. 2010 form 1040 ez   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. 2010 form 1040 ez   Also see Clothing and Household Items , earlier. 2010 form 1040 ez Cars, boats, and airplanes. 2010 form 1040 ez   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. 2010 form 1040 ez Boats. 2010 form 1040 ez   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. 2010 form 1040 ez Cars. 2010 form 1040 ez   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. 2010 form 1040 ez The guides may be published monthly or seasonally, and for different regions of the country. 2010 form 1040 ez These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. 2010 form 1040 ez The prices are not “official” and these publications are not considered an appraisal of any specific donated property. 2010 form 1040 ez But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. 2010 form 1040 ez   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. 2010 form 1040 ez You can also find used car pricing information on the Internet. 2010 form 1040 ez   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. 2010 form 1040 ez However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. 2010 form 1040 ez 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. 2010 form 1040 ez Example. 2010 form 1040 ez You donate a used car in poor condition to a local high school for use by students studying car repair. 2010 form 1040 ez A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. 2010 form 1040 ez However, the guide shows the price for a private party sale of the car is only $750. 2010 form 1040 ez The fair market value of the car is considered to be $750. 2010 form 1040 ez Large quantities. 2010 form 1040 ez   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. 2010 form 1040 ez Example. 2010 form 1040 ez You purchase 500 bibles for $1,000. 2010 form 1040 ez The person who sells them to you says the retail value of these bibles is $3,000. 2010 form 1040 ez 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. 2010 form 1040 ez Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer