New Tax Rules for 2006 Affect Thrift Store Donations
The Pension Protection Act of 2006 has severe implications for anyone taking charitable donations, both for cash, and in-kind. If you donate anything to your local thrift store, church or even the Salvation Army bell-ringers at Christmas, these changes affect you. Uncle Sam doesn't trust us anymore, the government was concerned that Americans were padding their returns:
"...where the government once was willing to trust you weren't padding the deducted value of small gifts, now you're going to need proof that you gave something-- and something of real value-- if you want to deduct it."
Check out LA Times Staff Writer Kathy M. Kristof's Charitable Donations Get Stricter Tax Rules.
We guess there are a lot of people who lie about their deductions, but how are you going to get a receipt when the collection plate is passed around? I suspect it may hurt smaller charities who can't keep up with paperwork. Any thoughts? Please share.
My spiritual center started sending us end of year receipts if we signed up for automatic deductions from our accounts. It didnt record the checks or money you put in weekly but if you decided to do everything through AutoTithe they take care of it for you. Sounds like I will be doing everything that way this year.
Posted by: shelly mccarthy | August 30, 2006 at 08:24 AM