Taxpayer asks: Hi, I read your blog entry that explains that service time donated to a charity is not deductible. What if there is an actual assignable value of the service time to the charity? For example, I am donating my services as an auction item for a charity auction; if somebody buys it for…
On January 12, a massive earthquake struck Haiti. The earthquake measured 7.0 on the Richter Scale. Devastating aftershocks followed. The confirmed death toll is 150,000 people and the Red Cross estimates that nearly 3 million people will be affected by the disaster. By comparison, Hurricane Katrina, considered to be the largest natural disaster in the…
Taxpayer asks: Can you tell me what the tax implications are for donating inherited items? My mother passed away about a year ago and I’m the executor of the estate. Now, my siblings are interested in taking deductions for items they feel they “inherited,” yet were actually immediately donated to charity without my siblings ever…
Taxpayer asks: Hi Tax Girl!I got rid of the husband and now I would love to get rid of the engagement ring. I have thought about donating it to a non-profit animal rescue group for them to auction at one of their charity events. What kind of deduction will I be able to claim and…
Welcome to my sixth in a series on state taxes! For information about what I’m trying to do, read my introductory bit. Next on the agenda, Colorado. COLORADO Population: 4,939,456 (22nd) Capital: Denver Largest City: Denver Gross Domestic Product: $236 billion GDP per capita: $40,963 (10th) 2008 election winner: Barack Obama web site: http://www.colorado.gov/ Income…
Just days after President Obama outlined his proposed budget, which includes tax modifications (yeah, it’s a cheesy word, keep reading) for high wage earners, key leaders in Congress are making noise that they might not be in support of the plan. Chief among them is Senate Finance Committee Chairman Max Baucus (D-MT) who questioned whether…
There’s a bag of used clothes on my porch that it is on its way to the Salvation Army (though not in this snow!). Like many Americans, my family makes an effort to give to a variety of charitable causes throughout the year. But why do we do it? I was raised to believe that…
Taxpayer asks: While we were out shopping, I put a $20 in the Salvation Army kettle in front of the store. I say we can take that as a deduction but my husband says no. Who is right? P.S. I have a new digital camera riding on your answer. Taxgirl says: Gosh. I hope your…
I’m sure that you’ve seen a number of signs and ads that encourage you to donate your vehicle to charity. In our area, they’re plastered all over the place… Do they actually work? Not so much anymore. In 2004, Congress changed the rules regarding car donations for charity. The rules more or less limited the…
Taxpayer asks: Hi taxgirl, There is a woman at our church who recently lost her home in a storm. A few of us put our heads together and decided to take up a collection for her. We collected money, housewares, bedding, you name it. She lost almost everything that she owned so we started from…