I’m in Chicago today for the BlogHer Conference, where I will be speaking about blogging and tax. One topic that I plan to focus on is the issue of hobby versus business, which I addressed earlier in an “Ask the Taxgirl” segment and in my Problogger guest post. Briefly, the IRS allows you more favorable…
It’s Fix the Tax Code Friday! “Above the line” deductions are deductions that you can take even if you don’t itemize. As such, they aren’t subject to phase-outs and income limits. Some common “above the line” deductions are: * Alimony (My favorite! Don’t you just have a mental picture of our a large number of…
Taxpayer asks: Last year I donated a painting that I created to our local church. I sold a similar painting through a gallery around the same time for $1000. Can I skip an appraisal and just use that the value for my charitable deduction on my tax return? Taxgirl says: Around this time of year,…
Taxpayer asks: I would like some help to finding a web site that could help me find amount that your can use for charitable items such as clothes and household items. We sold our house this year and really down sized to what we are taking. For example I gave 42 shirts to a nonprofit…
In addition to this being the time of the year when 501(c)(3) organizations come calling for charitable contributions of cash, it’s also the season for making donations of goods. Most commonly, that tends to be clothing and household items. I know from personal experience since I have three full bags of “gently worn” maternity and…
I received four charitable solicitations this week: one from my daughter’s school, one from my college, one from my law school and one from a local museum. No, word hadn’t gotten out about my new blogging gig, charitable organizations come calling about this time every year – and why not? Despite all of the signs…
It’s Fix the Tax Code Friday! Traditionally, charitable deductions have been limited to itemizers (meaning those who opt to take the itemized deduction rather than rely on the standard deduction). From time to time, Congress has considered extending the deduction to non-itemizers as a credit. This week’s question: If Congress did extend the deduction to…
For tax year 2003 (the most recent tax year for which data is available), individuals reported noncash donations valued at $36.9 billion. These donations were reported on federal form 8283, Noncash Charitable Contributions, which is required when a taxpayer makes noncash donations which exceed a total $500. Not surprisingly, corporate stock was the largest percentage,…
In addition to the obvious (gas savings), buying a fuel-efficient car can put more money back into your pocket. Congress has finally gotten its act together and is offering tax breaks for certain vehicles for 2006. Beginning in January 2006, those who purchase eligible vehicles will receive a tax credit, as opposed to a tax…