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Turbotax 2007 free Index A Actual knowledge Innocent spouse relief, Actual Knowledge or Reason To Know Separation of liability relief, Actual Knowledge Assistance (see Tax help) B Burden of proof, separation of liability, Burden of proof. Turbotax 2007 free C Comments on publication, Comments and suggestions. Turbotax 2007 free Community property law, relief from liability arising from, Community Property Laws Community property laws, Community Property Laws D Decedent, Form 8857 filed by or on behalf of a decedent. Turbotax 2007 free Domestic violence (separation of liability), Exception for spousal abuse or domestic violence. Turbotax 2007 free E Equitable relief Conditions for getting, Conditions for Getting Equitable Relief Factors for determining whether to grant, Factors for Determining Whether To Grant Equitable Relief Refunds, Refunds Under Equitable Relief Erroneous items, Erroneous Items Executors (see Decedent) F Flowcharts, Flowcharts Form 8857 Filled-in example, Filled-in Form 8857 For decedent, Form 8857 filed by or on behalf of a decedent. Turbotax 2007 free Tax Court review, Tax Court Review of Request When to file, When to file Form 8857. Turbotax 2007 free Free tax services, How To Get Tax Help H Help (see Tax help) How to request relief, How To Request Relief I Indications of unfairness Innocent spouse relief, Indications of Unfairness for Innocent Spouse Relief Injured spouse relief, Publication 971 - Additional Material Innocent spouse relief, Innocent Spouse Relief J Joint and several liability, Publication 971 - Additional Material L Limitations on Relief, Limitations on Relief M More information (see Tax help) N No joint return filed, Relief for Married Persons Who Did Not File Joint Returns P Partial relief, innocent spouse relief, Partial relief when a portion of erroneous item is unknown. Turbotax 2007 free Publications (see Tax help) Q Questions & Answers, Publication 971 - Additional Material R Reason to know, Actual Knowledge or Reason To Know Refunds, Refunds Limit on amount of refund, Limit on Amount of Refund Proof required, Proof Required Under equitable relief, Refunds Under Equitable Relief S Separation of liability relief, Separation of Liability Relief Spousal abuse, The IRS Must Contact Your Spouse or Former Spouse, Exception for spousal abuse or domestic violence. Turbotax 2007 free Spousal notification, The IRS Must Contact Your Spouse or Former Spouse, Publication 971 - Additional Material Suggestions for publication, Comments and suggestions. Turbotax 2007 free T Tax Court review, Tax Court Review of Request Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. Turbotax 2007 free TEFRA partnership proceedings, Exception for agreements relating to TEFRA partnership proceedings. Turbotax 2007 free Transferee liability, Transferee liability not affected by innocent spouse relief provisions. Turbotax 2007 free Transfers of property to avoid tax, Transfers of Property To Avoid Tax TTY/TDD information, How To Get Tax Help U Underpaid tax, Equitable Relief Understated tax, Understated Tax United States Tax Court, Tax Court Review of Request W When to file Form 8857, When to file Form 8857. Turbotax 2007 free Prev  Up     Home   More Online Publications
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Understanding Your CP211A Notice

We approved your Form 8868, Application for Extension of Time To File an Exempt Organization Return.


What you need to do

  • Keep this notice for your records.
  • File your required form by your new due date shown on the notice. We encourage you to use electronic filing – the fastest and easiest way to file.

You may want to

  • Visit www.irs.gov/Charities-&-Non-Profits to learn about approved e-File providers, what types of returns can be filed electronically, and whether you are required to file electronically.

Answers to Common Questions

Q. Where can I go for more information about tax-exempt organizations?

A. For more information on Employee Benefit Plans, see Tax Information for Charities & Other Non-Profits.

Q. Can I get help over the phone?

A. If you have questions and/or need help, you can call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.


Tips for next year

Be sure to mail your Form 8868 on or before the due date of your return.

Page Last Reviewed or Updated: 24-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Turbotax 2007 Free

Turbotax 2007 free 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. Turbotax 2007 free Text message. Turbotax 2007 free Credit card. Turbotax 2007 free Pay-by-phone account. Turbotax 2007 free Stock certificate. Turbotax 2007 free Promissory note. Turbotax 2007 free Option. Turbotax 2007 free Borrowed funds. Turbotax 2007 free Conditional gift. Turbotax 2007 free 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. Turbotax 2007 free Total deduction over $500. Turbotax 2007 free Deduction over $5,000 for one item. Turbotax 2007 free Vehicle donations. Turbotax 2007 free Clothing and household items not in good used condition. Turbotax 2007 free Easement on building in historic district. Turbotax 2007 free Deduction over $500,000. Turbotax 2007 free 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. Turbotax 2007 free Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Turbotax 2007 free How to check whether an organization can receive deductible charitable contributions. Turbotax 2007 free   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Turbotax 2007 free Or go to IRS. Turbotax 2007 free gov. Turbotax 2007 free Click on “Tools” and then on “Exempt Organizations Select Check” (www. Turbotax 2007 free irs. Turbotax 2007 free gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Turbotax 2007 free This online tool will enable you to search for qualified organizations. Turbotax 2007 free You can also call the IRS to find out if an organization is qualified. Turbotax 2007 free Call 1-877-829-5500. Turbotax 2007 free 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. Turbotax 2007 free Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Turbotax 2007 free gsa. Turbotax 2007 free gov/fedrelay. Turbotax 2007 free Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Turbotax 2007 free 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). Turbotax 2007 free 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. Turbotax 2007 free Certain organizations that foster national or international amateur sports competition also qualify. Turbotax 2007 free War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Turbotax 2007 free Domestic fraternal societies, orders, and associations operating under the lodge system. Turbotax 2007 free (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. Turbotax 2007 free ) Certain nonprofit cemetery companies or corporations. Turbotax 2007 free (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. Turbotax 2007 free ) The United States or any state, the District of Columbia, a U. Turbotax 2007 free S. Turbotax 2007 free possession (including Puerto Rico), a political subdivision of a state or U. Turbotax 2007 free S. Turbotax 2007 free possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Turbotax 2007 free (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Turbotax 2007 free ) Example 1. Turbotax 2007 free You contribute cash to your city's police department to be used as a reward for information about a crime. Turbotax 2007 free The city police department is a qualified organization, and your contribution is for a public purpose. Turbotax 2007 free You can deduct your contribution. Turbotax 2007 free Example 2. Turbotax 2007 free You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Turbotax 2007 free Because the trust fund is part of the U. Turbotax 2007 free S. Turbotax 2007 free Government, you contributed to a qualified organization. Turbotax 2007 free You can deduct your contribution. Turbotax 2007 free Examples. Turbotax 2007 free   The following list gives some examples of qualified organizations. Turbotax 2007 free Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Turbotax 2007 free Most nonprofit charitable organizations such as the American Red Cross and the United Way. Turbotax 2007 free Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Turbotax 2007 free 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. Turbotax 2007 free 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 . Turbotax 2007 free Nonprofit hospitals and medical research organizations. Turbotax 2007 free Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Turbotax 2007 free Nonprofit volunteer fire companies. Turbotax 2007 free Nonprofit organizations that develop and maintain public parks and recreation facilities. Turbotax 2007 free Civil defense organizations. Turbotax 2007 free Canadian charities. Turbotax 2007 free   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Turbotax 2007 free To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Turbotax 2007 free See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Turbotax 2007 free Mexican charities. Turbotax 2007 free   Under the U. Turbotax 2007 free S. Turbotax 2007 free -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. Turbotax 2007 free S. Turbotax 2007 free law. Turbotax 2007 free To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Turbotax 2007 free The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Turbotax 2007 free Israeli charities. Turbotax 2007 free   Under the U. Turbotax 2007 free S. Turbotax 2007 free -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. Turbotax 2007 free S. Turbotax 2007 free law. Turbotax 2007 free To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Turbotax 2007 free The limits described in Limits on Deductions , later, apply. Turbotax 2007 free The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Turbotax 2007 free Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Turbotax 2007 free 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. Turbotax 2007 free The contributions must be made to a qualified organization and not set aside for use by a specific person. Turbotax 2007 free 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. Turbotax 2007 free See Contributions of Property , later. Turbotax 2007 free 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. Turbotax 2007 free In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Turbotax 2007 free See Limits on Deductions , later. Turbotax 2007 free Table 1 in this publication gives examples of contributions you can and cannot deduct. Turbotax 2007 free 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. Turbotax 2007 free Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Turbotax 2007 free If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Turbotax 2007 free For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Turbotax 2007 free Example 1. Turbotax 2007 free You pay $65 for a ticket to a dinner-dance at a church. Turbotax 2007 free Your entire $65 payment goes to the church. Turbotax 2007 free The ticket to the dinner-dance has a fair market value of $25. Turbotax 2007 free When you buy your ticket, you know its value is less than your payment. Turbotax 2007 free To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Turbotax 2007 free You can deduct $40 as a charitable contribution to the church. Turbotax 2007 free Example 2. Turbotax 2007 free At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Turbotax 2007 free The amount you pay is no more than the fair rental value. Turbotax 2007 free You have not made a deductible charitable contribution. Turbotax 2007 free Athletic events. Turbotax 2007 free   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. Turbotax 2007 free   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Turbotax 2007 free Subtract the price of the tickets from your payment. Turbotax 2007 free You can deduct 80% of the remaining amount as a charitable contribution. Turbotax 2007 free Example 1. Turbotax 2007 free You pay $300 a year for membership in a university's athletic scholarship program. Turbotax 2007 free 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. Turbotax 2007 free You can deduct $240 (80% of $300) as a charitable contribution. Turbotax 2007 free Example 2. Turbotax 2007 free 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. Turbotax 2007 free You must subtract the usual price of a ticket ($120) from your $300 payment. Turbotax 2007 free The result is $180. Turbotax 2007 free Your deductible charitable contribution is $144 (80% of $180). Turbotax 2007 free Charity benefit events. Turbotax 2007 free   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. Turbotax 2007 free   If there is an established charge for the event, that charge is the value of your benefit. Turbotax 2007 free If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Turbotax 2007 free Whether you use the tickets or other privileges has no effect on the amount you can deduct. Turbotax 2007 free However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Turbotax 2007 free    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. Turbotax 2007 free If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Turbotax 2007 free Example. Turbotax 2007 free You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Turbotax 2007 free Printed on the ticket is “Contribution–$40. Turbotax 2007 free ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Turbotax 2007 free Membership fees or dues. Turbotax 2007 free   You may be able to deduct membership fees or dues you pay to a qualified organization. Turbotax 2007 free However, you can deduct only the amount that is more than the value of the benefits you receive. Turbotax 2007 free   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Turbotax 2007 free They are not qualified organizations. Turbotax 2007 free Certain membership benefits can be disregarded. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free 20. Turbotax 2007 free Token items. Turbotax 2007 free   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Turbotax 2007 free You receive only a small item or other benefit of token value. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free Written statement. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free It must also give you a good faith estimate of the value of those goods or services. Turbotax 2007 free   The organization can give you the statement either when it solicits or when it receives the payment from you. Turbotax 2007 free Exception. Turbotax 2007 free   An organization will not have to give you this statement if one of the following is true. Turbotax 2007 free 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. Turbotax 2007 free You receive only items whose value is not substantial as described under Token items , earlier. Turbotax 2007 free You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Turbotax 2007 free Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Turbotax 2007 free 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. Turbotax 2007 free You can deduct up to $50 a month for each full calendar month the student lives with you. Turbotax 2007 free Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Turbotax 2007 free Qualified organization. Turbotax 2007 free   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). Turbotax 2007 free 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. Turbotax 2007 free But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Turbotax 2007 free Relative. Turbotax 2007 free   The term “relative” means any of the following persons. Turbotax 2007 free Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Turbotax 2007 free A legally adopted child is considered your child. Turbotax 2007 free Your brother, sister, half brother, half sister, stepbrother, or stepsister. Turbotax 2007 free Your father, mother, grandparent, or other direct ancestor. Turbotax 2007 free Your stepfather or stepmother. Turbotax 2007 free A son or daughter of your brother or sister. Turbotax 2007 free A brother or sister of your father or mother. Turbotax 2007 free Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Turbotax 2007 free Dependent. Turbotax 2007 free   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. Turbotax 2007 free    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. Turbotax 2007 free S. Turbotax 2007 free residents and cannot be claimed as dependents. Turbotax 2007 free Qualifying expenses. Turbotax 2007 free   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. Turbotax 2007 free Expenses that do not qualify. Turbotax 2007 free   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Turbotax 2007 free Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Turbotax 2007 free Reimbursed expenses. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free Mutual exchange program. Turbotax 2007 free   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. Turbotax 2007 free Reporting expenses. Turbotax 2007 free   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. Turbotax 2007 free Out-of-Pocket Expenses in Giving Services Table 2. Turbotax 2007 free Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Turbotax 2007 free All of the rules explained in this publication also apply. Turbotax 2007 free See, in particular, Out-of-Pocket Expenses in Giving Services . Turbotax 2007 free Question Answer I volunteer 6 hours a week in the office of a qualified organization. Turbotax 2007 free The receptionist is paid $10 an hour for the same work. Turbotax 2007 free Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Turbotax 2007 free  The office is 30 miles from my home. Turbotax 2007 free 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. Turbotax 2007 free If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Turbotax 2007 free I volunteer as a Red Cross nurse's aide at a hospital. Turbotax 2007 free 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. Turbotax 2007 free I pay a babysitter to watch my children while I volunteer for a qualified organization. Turbotax 2007 free 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. Turbotax 2007 free (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Turbotax 2007 free ) 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. Turbotax 2007 free 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. Turbotax 2007 free Table 2 contains questions and answers that apply to some individuals who volunteer their services. Turbotax 2007 free Underprivileged youths selected by charity. Turbotax 2007 free   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Turbotax 2007 free The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Turbotax 2007 free Your own similar expenses in accompanying the youths are not deductible. Turbotax 2007 free Conventions. Turbotax 2007 free   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. Turbotax 2007 free However, see Travel , later. Turbotax 2007 free   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Turbotax 2007 free You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Turbotax 2007 free   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. Turbotax 2007 free You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Turbotax 2007 free Uniforms. Turbotax 2007 free   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. Turbotax 2007 free Foster parents. Turbotax 2007 free   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. Turbotax 2007 free A qualified organization must select the individuals you take into your home for foster care. Turbotax 2007 free   You can deduct expenses that meet both of the following requirements. Turbotax 2007 free They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Turbotax 2007 free They are incurred primarily to benefit the qualified organization. Turbotax 2007 free   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. Turbotax 2007 free For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Turbotax 2007 free Example. Turbotax 2007 free You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Turbotax 2007 free Your unreimbursed expenses are not deductible as charitable contributions. Turbotax 2007 free Church deacon. Turbotax 2007 free   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Turbotax 2007 free 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. Turbotax 2007 free Car expenses. Turbotax 2007 free   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. Turbotax 2007 free You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Turbotax 2007 free   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. Turbotax 2007 free   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Turbotax 2007 free   You must keep reliable written records of your car expenses. Turbotax 2007 free For more information, see Car expenses under Records To Keep, later. Turbotax 2007 free Travel. Turbotax 2007 free   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. Turbotax 2007 free This applies whether you pay the expenses directly or indirectly. Turbotax 2007 free You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Turbotax 2007 free   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free Example 1. Turbotax 2007 free You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Turbotax 2007 free You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Turbotax 2007 free You participate in the activities of the group and enjoy your time with them. Turbotax 2007 free You oversee the breaking of camp and you transport the group home. Turbotax 2007 free You can deduct your travel expenses. Turbotax 2007 free Example 2. Turbotax 2007 free You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Turbotax 2007 free The project is sponsored by a charitable organization. Turbotax 2007 free In most circumstances, you cannot deduct your expenses. Turbotax 2007 free Example 3. Turbotax 2007 free You work for several hours each morning on an archeological dig sponsored by a charitable organization. Turbotax 2007 free The rest of the day is free for recreation and sightseeing. Turbotax 2007 free You cannot take a charitable contribution deduction even though you work very hard during those few hours. Turbotax 2007 free Example 4. Turbotax 2007 free You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Turbotax 2007 free In the evening you go to the theater. Turbotax 2007 free You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Turbotax 2007 free Daily allowance (per diem). Turbotax 2007 free   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. Turbotax 2007 free You may be able to deduct any necessary travel expenses that are more than the allowance. Turbotax 2007 free Deductible travel expenses. Turbotax 2007 free   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. Turbotax 2007 free Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Turbotax 2007 free For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Turbotax 2007 free 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. Turbotax 2007 free The deduction is limited to $10,000 a year. Turbotax 2007 free 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. Turbotax 2007 free Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Turbotax 2007 free 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. Turbotax 2007 free You must keep records showing the time, place, date, amount, and nature of the expenses. Turbotax 2007 free For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Turbotax 2007 free irs. Turbotax 2007 free gov/pub/irs-irbs/irb06-47. Turbotax 2007 free pdf. Turbotax 2007 free Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Turbotax 2007 free 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. Turbotax 2007 free Detailed discussions of these items follow. Turbotax 2007 free Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Turbotax 2007 free Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Turbotax 2007 free Contributions to individuals who are needy or worthy. Turbotax 2007 free You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Turbotax 2007 free 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. Turbotax 2007 free Example. Turbotax 2007 free You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Turbotax 2007 free However, you cannot deduct contributions earmarked for relief of a particular individual or family. Turbotax 2007 free Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Turbotax 2007 free Expenses you paid for another person who provided services to a qualified organization. Turbotax 2007 free Example. Turbotax 2007 free Your son does missionary work. Turbotax 2007 free You pay his expenses. Turbotax 2007 free You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Turbotax 2007 free Payments to a hospital that are for a specific patient's care or for services for a specific patient. Turbotax 2007 free You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Turbotax 2007 free Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Turbotax 2007 free 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. Turbotax 2007 free Chambers of commerce and other business leagues or organizations. Turbotax 2007 free Civic leagues and associations. Turbotax 2007 free Communist organizations. Turbotax 2007 free Country clubs and other social clubs. Turbotax 2007 free Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Turbotax 2007 free (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Turbotax 2007 free ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Turbotax 2007 free Homeowners' associations. Turbotax 2007 free Labor unions. Turbotax 2007 free 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). Turbotax 2007 free See Publication 529, Miscellaneous Deductions. Turbotax 2007 free Political organizations and candidates. Turbotax 2007 free 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. Turbotax 2007 free See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Turbotax 2007 free These contributions include the following. Turbotax 2007 free Contributions for lobbying. Turbotax 2007 free This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Turbotax 2007 free Contributions to a retirement home for room, board, maintenance, or admittance. Turbotax 2007 free Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Turbotax 2007 free Costs of raffles, bingo, lottery, etc. Turbotax 2007 free 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. Turbotax 2007 free For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Turbotax 2007 free Dues to fraternal orders and similar groups. Turbotax 2007 free However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Turbotax 2007 free Tuition, or amounts you pay instead of tuition. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free ” Contributions connected with split-dollar insurance arrangements. Turbotax 2007 free 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. Turbotax 2007 free Example. Turbotax 2007 free You donate money to a charitable organization. Turbotax 2007 free The charity uses the money to purchase a cash value life insurance policy. Turbotax 2007 free The beneficiaries under the insurance policy include members of your family. Turbotax 2007 free Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Turbotax 2007 free 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. Turbotax 2007 free You must have been at least age 70½ when the distribution was made. Turbotax 2007 free Your total QCDs for the year cannot be more than $100,000. Turbotax 2007 free If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Turbotax 2007 free See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Turbotax 2007 free 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. Turbotax 2007 free Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Turbotax 2007 free 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. Turbotax 2007 free Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Turbotax 2007 free However, you may be able to claim a tax credit for these expenses. Turbotax 2007 free Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Turbotax 2007 free See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Turbotax 2007 free You also may be able to claim an exemption for the child. Turbotax 2007 free See Exemptions for Dependents in Publication 501 for more information. Turbotax 2007 free Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Turbotax 2007 free But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Turbotax 2007 free See Deductions Subject to the 2% Limit in Publication 529 for more information. Turbotax 2007 free 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. Turbotax 2007 free There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Turbotax 2007 free 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. Turbotax 2007 free For details, see Internal Revenue Code section 170(f)(18). Turbotax 2007 free Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Turbotax 2007 free For details, see Partial Interest in Property under Contributions of Property, later. Turbotax 2007 free 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. Turbotax 2007 free However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Turbotax 2007 free See Giving Property That Has Increased in Value , later. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free These special rules are described next. Turbotax 2007 free 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. Turbotax 2007 free Exception. Turbotax 2007 free   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. Turbotax 2007 free Household items. Turbotax 2007 free   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Turbotax 2007 free   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Turbotax 2007 free Fair market value. Turbotax 2007 free   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Turbotax 2007 free Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Turbotax 2007 free 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. Turbotax 2007 free Deduction more than $500. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free Form 1098-C. Turbotax 2007 free   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. Turbotax 2007 free The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Turbotax 2007 free   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Turbotax 2007 free S. Turbotax 2007 free 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. Turbotax 2007 free   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Turbotax 2007 free    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Turbotax 2007 free But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Turbotax 2007 free Filing deadline approaching and still no Form 1098-C. Turbotax 2007 free   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Turbotax 2007 free Request an automatic 6-month extension of time to file your return. Turbotax 2007 free You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Turbotax 2007 free S. Turbotax 2007 free Individual Income Tax Return. Turbotax 2007 free For more information, see the instructions for Form 4868. Turbotax 2007 free File the return on time without claiming the deduction for the qualified vehicle. Turbotax 2007 free After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Turbotax 2007 free S. Turbotax 2007 free Individual Income Tax Return, claiming the deduction. Turbotax 2007 free Attach Copy B of Form 1098-C (or other statement) to the amended return. Turbotax 2007 free Exceptions. Turbotax 2007 free   There are two exceptions to the rules just described for deductions of more than $500. Turbotax 2007 free Exception 1—vehicle used or improved by organization. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free The Form 1098-C (or other statement) will show whether this exception applies. Turbotax 2007 free    Exception 2—vehicle given or sold to needy individual. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free The Form 1098-C (or other statement) will show whether this exception applies. Turbotax 2007 free   This exception does not apply if the organization sells the vehicle at auction. Turbotax 2007 free In that case, you cannot deduct the vehicle's fair market value. Turbotax 2007 free Example. Turbotax 2007 free Anita donates a used car to a qualified organization. Turbotax 2007 free She bought it 3 years ago for $9,000. Turbotax 2007 free A used car guide shows the fair market value for this type of car is $6,000. Turbotax 2007 free However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Turbotax 2007 free Neither exception 1 nor exception 2 applies. Turbotax 2007 free If Anita itemizes her deductions, she can deduct $2,900 for her donation. Turbotax 2007 free She must attach Form 1098-C and Form 8283 to her return. Turbotax 2007 free Deduction $500 or less. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free Fair market value. Turbotax 2007 free   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Turbotax 2007 free Donations of inventory. Turbotax 2007 free   The vehicle donation rules just described do not apply to donations of inventory. Turbotax 2007 free 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. Turbotax 2007 free See Inventory , later. Turbotax 2007 free 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. Turbotax 2007 free This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Turbotax 2007 free Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Turbotax 2007 free Your basis does not include transportation or travel costs. Turbotax 2007 free It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Turbotax 2007 free In addition, it does not include the value of your time. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free This prevents you from deducting the same amount as both investment interest and a charitable contribution. Turbotax 2007 free 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. Turbotax 2007 free 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). Turbotax 2007 free For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Turbotax 2007 free Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Turbotax 2007 free Right to use property. Turbotax 2007 free   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Turbotax 2007 free Example 1. Turbotax 2007 free You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Turbotax 2007 free Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Turbotax 2007 free Example 2. Turbotax 2007 free Mandy White owns a vacation home at the beach that she sometimes rents to others. Turbotax 2007 free For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Turbotax 2007 free 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. Turbotax 2007 free Mandy cannot claim a deduction because of the partial interest rule. Turbotax 2007 free Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Turbotax 2007 free See Contributions From Which You Benefit , earlier. Turbotax 2007 free Exceptions. Turbotax 2007 free   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Turbotax 2007 free A remainder interest in your personal home or farm. Turbotax 2007 free A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Turbotax 2007 free Example. Turbotax 2007 free You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Turbotax 2007 free You can deduct the value of the remainder interest. Turbotax 2007 free An undivided part of your entire interest. Turbotax 2007 free 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. Turbotax 2007 free But see Fractional Interest in Tangible Personal Property , later. Turbotax 2007 free Example. Turbotax 2007 free You contribute voting stock to a qualified organization but keep the right to vote the stock. Turbotax 2007 free The right to vote is a substantial right in the stock. Turbotax 2007 free You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Turbotax 2007 free A partial interest that would be deductible if transferred to certain types of trusts. Turbotax 2007 free A qualified conservation contribution (defined later). Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free Tangible personal property is defined later under Future Interest in Tangible Personal Property . Turbotax 2007 free A fractional interest in property is an undivided portion of your entire interest in the property. Turbotax 2007 free Example. Turbotax 2007 free 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. Turbotax 2007 free Recapture of deduction. Turbotax 2007 free   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Turbotax 2007 free You contributed a fractional interest in tangible personal property after August 17, 2006. Turbotax 2007 free 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. Turbotax 2007 free   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. Turbotax 2007 free Additional tax. Turbotax 2007 free   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Turbotax 2007 free 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. Turbotax 2007 free Qualified organization. Turbotax 2007 free   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. Turbotax 2007 free The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Turbotax 2007 free   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. Turbotax 2007 free Qualified real property interest. Turbotax 2007 free   This is any of the following interests in real property. Turbotax 2007 free 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). Turbotax 2007 free A remainder interest. Turbotax 2007 free A restriction (granted in perpetuity) on the use that may be made of the real property. Turbotax 2007 free Conservation purposes. Turbotax 2007 free   Your contribution must be made only for one of the following conservation purposes. Turbotax 2007 free Preserving land areas for outdoor recreation by, or for the education of, the general public. Turbotax 2007 free Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Turbotax 2007 free Preserving open space, including farmland and forest land, if it yields a significant public benefit. Turbotax 2007 free 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. Turbotax 2007 free Preserving a historically important land area or a certified historic structure. Turbotax 2007 free Building in registered historic district. Turbotax 2007 free   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. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free   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. Turbotax 2007 free For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Turbotax 2007 free   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Turbotax 2007 free See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Turbotax 2007 free 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). Turbotax 2007 free See Deductions Subject to the 2% Limit in Publication 529 for more information. Turbotax 2007 free More information. Turbotax 2007 free   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Turbotax 2007 free For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Turbotax 2007 free For more information about qualified conservation contributions, see Regulations section 1. Turbotax 2007 free 170A-14. Turbotax 2007 free 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. Turbotax 2007 free But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Turbotax 2007 free Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Turbotax 2007 free 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. Turbotax 2007 free Tangible personal property. Turbotax 2007 free   This is any property, other than land or buildings, that can be seen or touched. Turbotax 2007 free It includes furniture, books, jewelry, paintings, and cars. Turbotax 2007 free Future interest. Turbotax 2007 free   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. Turbotax 2007 free Example. Turbotax 2007 free You own an antique car that you contribute to a museum. Turbotax 2007 free You give up ownership, but retain the right to keep the car in your garage with your personal collection. Turbotax 2007 free Because you keep an interest in the property, you cannot deduct the contribution. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free 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. Turbotax 2007 free You must remove the amount of your charitable contribution deduction from your opening inventory. Turbotax 2007 free It is not part of the cost of goods sold. Turbotax 2007 free 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. Turbotax 2007 free Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Turbotax 2007 free For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Turbotax 2007 free A special rule applies to certain donations of food inventory. Turbotax 2007 free See Food Inventory, later. Turbotax 2007 free 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. Turbotax 2007 free Intellectual property means any of the following: Patents. Turbotax 2007 free Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Turbotax 2007 free Trademarks. Turbotax 2007 free Trade names. Turbotax 2007 free Trade secrets. Turbotax 2007 free Know-how. Turbotax 2007 free Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Turbotax 2007 free Other similar property or applications or registrations of such property. Turbotax 2007 free Additional deduction based on income. Turbotax 2007 free   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. Turbotax 2007 free   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. Turbotax 2007 free In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Turbotax 2007 free 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. Turbotax 2007 free   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. Turbotax 2007 free The additional deductions cannot be taken for intellectual property donated to certain private foundations. Turbotax 2007 free 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. Turbotax 2007 free   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. Turbotax 2007 free   The organization is required to file an information return showing the income from the property, with a copy to you. Turbotax 2007 free This is done on Form 8899, Notice of Income From Donated Intellectual Property. Turbotax 2007 free Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Turbotax 2007 free Publication 561 contains a more complete discussion. Turbotax 2007 free 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. Turbotax 2007 free Used clothing. Turbotax 2007 free   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Turbotax 2007 free There are no fixed formulas or methods for finding the value of items of clothing. Turbotax 2007 free   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. Turbotax 2007 free      Also see Clothing and Household Items , earlier. Turbotax 2007 free Example. Turbotax 2007 free    Kristin donated a coat to a thrift store operated by her church. Turbotax 2007 free She paid $300 for the coat 3 years ago. Turbotax 2007 free Similar coats in the thrift store sell for $50. Turbotax 2007 free The fair market value of the coat is $50. Turbotax 2007 free Kristin's donation is limited to $50. Turbotax 2007 free Household items. Turbotax 2007 free   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Turbotax 2007 free These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Turbotax 2007 free For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Turbotax 2007 free   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Turbotax 2007 free Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Turbotax 2007 free Do not include any of this evidence with your tax return. Turbotax 2007 free   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. Turbotax 2007 free   Also see Clothing and Household Items , earlier. Turbotax 2007 free Cars, boats, and airplanes. Turbotax 2007 free   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Turbotax 2007 free Boats. Turbotax 2007 free   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. Turbotax 2007 free Cars. Turbotax 2007 free   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. Turbotax 2007 free The guides may be published monthly or seasonally, and for different regions of the country. Turbotax 2007 free These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Turbotax 2007 free The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Turbotax 2007 free But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Turbotax 2007 free   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Turbotax 2007 free You can also find used car pricing information on the Internet. Turbotax 2007 free   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. Turbotax 2007 free However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Turbotax 2007 free 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. Turbotax 2007 free Example. Turbotax 2007 free You donate a used car in poor condition to a local high school for use by students studying car repair. Turbotax 2007 free A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Turbotax 2007 free However, the guide shows the price for a private party sale of the car is only $750. Turbotax 2007 free The fair market value of the car is considered to be $750. Turbotax 2007 free Large quantities. Turbotax 2007 free   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. Turbotax 2007 free Example. Turbotax 2007 free You purchase 500 bibles for $1,000. Turbotax 2007 free The person who sells them to you says the retail value of these bibles is $3,000. Turbotax 2007 free 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. Turbotax 2007 free Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer