Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-23-2012, 06:43 PM
Junior Member
 
Join Date: Jan 2012
Posts: 1
Red face Limit to charitable write-offs?

I am filing as an individual, but a few years back I co-owned an LLC for a upstart game I tried making. Anyway, a year after the business had already closed, I still had quite a bit of left over product that I didn't want...so I found a charity where I could donate the games for low-income kids.

My question is, can I write off that donation from my personal income? The receipt is made out to me, not the now defunct LLC. And if I can, is there a limit to how much I can write off, either based on a specific dollar amount or a percentage of my overall income?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-24-2012, 04:41 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“My question is, can I write off that donation from my personal income?”----> You need to donate to a qualified charity.Tax law allows a deduction for charitable donations if you can itemize deductions on Sch A of 1040, if you do NOT itemize your deductions on Sch A of 1040, then you can NOT deduct your donations on your return. So, you ned to keep ongoing records of cash and noncash charitable contributions made throughout the year if there is a possibility that you can itemize.You need to use canceled checks, receipts or written records for cash or noncash donations of less than $250 in one day. You need an acknowledgement letter from the charity for donations of $250 or more and a written appraisal for noncash donations worth more than $5,000.
Please visit the IRS website here: Eight Tips for Deducting Charitable Contributions
“ The receipt is made out to me, not the now defunct LLC. And if I can, is there a limit to how much I can write off, either based on a specific dollar amount or a percentage of my overall income?”--->Your donations to a charity reduced your taxable income, NOT your AGI as long as you itemize them on Sch A of 1040 and reduce your tax liability on 1040. However, the amount of some of those deductions is limited in order to keep them from being abused. These caps may be a fixed amount or a percentage of your income depending on the deduction. Your charitable contributions can total no more than 50 percent of your AGI, depending on the type of organizations to which the donations are made. The 50 percent limit applies to churches, educational associations, hospitals and public charities. Donations to all other IRS-approved organizations such as fraternal groups, veterans' organizations and private non-operating foundations foundations that provide financial support to charities have a 30-percent limit unless the donation is capital property, then the limit is 20 percent of your AGI. If there is a question about whether you can deduct donations to specific organization and how much, you should contact the IRS office or the charity. Excess contributions that are NOT deductible this year can be carried over for the next five years.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
House Approves Allowing Write-Offs of Haiti Donations in '09 Filings! TaxGuru For 2009 0 01-24-2010 12:18 PM
Depreciation limit: how about >$999.00 Section19 C-Corporation 0 03-09-2009 05:07 PM
What is the Special 30% Limit for Capital Gain Property made to 50% Limit Org's?. TaxGuru Itemized Deductions 0 07-09-2008 11:35 AM
write offs on capital gains on second home lhawkins Capital Gains 2 07-30-2007 04:05 PM
Charitable Contribution limit for C Corporations! bookkeeping C-Corporation 1 01-29-2007 10:43 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.