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