Many people give to charity each year during the holiday season. Remember, if you want to claim a tax deduction for your gifts, you must itemize your deductions. There are several tax rules that you should know about before you give. Here are six tips from the IRS that you should keep in mind:
Qualified charities: You can only deduct gifts you give to qualified charities. Mesquite Club, Inc. is a qualified charity. Tax ID #: 88-6003112
Monetary donations: Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return. This is true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements. If you give by payroll deductions, you should retain a pay stub, a Form W-2 wage statement or other document from your employer. It must show the total amount withheld for charity, along with the pledge card showing the name of the charity.
Household goods: Household items include furniture, furnishings, electronics, appliances and linens. If you donate clothing and household items to charity, they generally must be in at least good used condition to claim a tax deduction. If you claim a deduction of over $500 for an item, it doesn’t have to meet this standard if you include a qualified appraisal of the item with your tax return.
Records required: You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. Additional rules apply to the statement for gifts of that amount. This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the required information may meet both requirements.
Year-end gifts: You can deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year, it will count for 2017. This is true even if you don’t pay the credit card bill until 2017. Also, a check will count for 2017 if you mail it in 2017.
You may remember the Mesquite Club in your will.
Your attorney will be able to explain the tax advantages to you of making bequests to The Mesquite Club, Inc. In terms of actual costs to your estate, the deductibility of such bequests for Federal estate tax purposes mean that the actual dollar outlay may be far less than the face amount of the bequest. This is particularly true if you are a person of considerable means. Your attorney can acquaint you, in an approximate way, with the actual savings you may envision for your estate by means of such bequest. You need not make the bequest in outright form, but you may plan them so That they will take effect only upon the death of other members of your family for whom you have made prior provisions in your will. In this way, you may accomplish the two-fold result of providing security for your closest loved ones while seeing to it that, when the funds are no longer needed for their support, the funds will be put to constructive use.
Your bequests can take the form of furthering the general purposes of The Mesquite Club, Inc. or, if you wish, or can be earmarked for some particular phase of The Mesquite Club, Inc. activities that specifically Interest you. Although The Mesquite Club, Inc., will welcome and be grateful for such bequests for specific purposes, The Mesquite Club, Inc., prefers that bequests not be restricted., so that after your death, the money can be used for whatever programs are then in need of funds.
If you are thinking of making a bequest to The Mesquite Club, Inc., you should explore this matter fully with your attorney. They will be able to assist you in effectuating a plan which will best achieve your particular testamentary objectives. For the guidance of attorneys drafting wills which make bequests to The Mesquite Club, Inc., there are shown below a few samples of the different forms such bequests may take. Of course, these forms must be adapted by the attorney who makes use of them to the requirements of the particular instrument that they are drafting. They must be aware of the interrelationships between such bequests and the other provisions of your will.
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