IRS has issued final regs regarding substantiation and reporting requirements for cash and non-cash charitable contribution deductions that, while largely following 2008 proposed regs, contain several new rules.
…A taxpayer can't deduct any contribution of a cash, check, or other monetary gift unless he maintains as a record of the contribution a bank record or a written communication from the donee organization showing its name, plus the date and aymount of the contribution. For contributions of property (other than cash), the taxpayer must have a receipt from the donee and keep records showing the donee's name and describing the gift.
…No charitable deduction is allowed for any (cash or property) contribution of $250 or more unless the taxpayer substantiates it by a contemporaneous written acknowledgment (not ujust a cancelled check) from the donee (or its agent).
…For noncash contributions that are:
more than $500 but not more than $5,000, the donor mus attach to its return a description of the contributed property. This requirement doesn't apply to a C corporation.
more than $5,000 but not more than $500,000, the donor must obtain a “qualified appraisal” and attach to its return information about the property and appraisal (i.e., appraisal summary) as required by IRS.
more than $500,000, the donor must attached a qualified appraisal to its return.
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