Page 350 - Individual Forms & Instructions Guide

10:55 - 3-Jan-2023
Page 11 of 17 Fileid: … /i1040scha/2022/a/xml/cycle06/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
over to next year. See Pub. 526 for more Line 12 tributions will be allowed only if the
information. items are in good used condition or bet-
Deduction for gifts by cash or check Other Than by Cash or ter. However, this rule doesn't apply to a
limited. If your deduction for the gifts Check contribution of any single item for
you made in cash or by check is limited, which a deduction of more than $500 is
see Pub. 526 to figure the amount you Enter on line 12 the total value of your claimed and for which you include a
can deduct. Only enter on line 11 the de- contributions of property other than by qualified appraisal and Form 8283 with
ductible value of gifts you made in cash cash or check, unless a limit on deduct- your tax return.
or by check. ing gifts applies to you. For more infor- Recordkeeping. If you gave property,
Recordkeeping. For any contribution mation about the limits on deducting you should keep a receipt or written
made in cash, regardless of the amount, gifts, see Limit on the amount you can statement from the organization you
you must maintain as a record of the deduct, earlier. If your deduction is limi- gave the property to, or a reliable written
contribution a bank record (such as a ted, you may have a carryover to next record, that shows the organization's
canceled check or credit card statement) year. See Pub. 526 for more informa- name and address, the date and location
or a written record from the charity. The tion. of the gift, and a description of the prop-
written record must include the name of Deduction for gifts other than by cash erty. For each gift of property, you
the charity, date, and amount of the con- or check limited. If your deduction for should also keep reliable written records
tribution. If you made contributions the contributions of property other than that include:
through payroll deduction, see Pub. 526 by cash or check is limited, see Pub. 526 • How you figured the property's
for information on the records you must to figure the amount you can deduct. value at the time you gave it. If the value
keep. Don't attach the record to your tax Only enter on line 12 the deductible val- was determined by an appraisal, keep a
return. Instead, keep it with your other ue of your contributions of property oth- signed copy of the appraisal.
tax records. er than by cash or check. • The cost or other basis of the prop-
For contributions of $250 or more, Valuing contributions of used items. erty if you must reduce it by any ordina-
you must also have a contemporaneous If you gave used items, such as clothing ry income or capital gain that would
have resulted if the property had been
written acknowledgment from the chari- or furniture, deduct their fair market val- sold at its fair market value.
table organization. See Gifts of $250 or ue at the time you gave them. Fair mar-
• How you figured your deduction if
more, earlier, for more information. You ket value is what a willing buyer would you chose to reduce your deduction for
will still need to keep a record of when pay a willing seller when neither has to gifts of capital gain property.
you made the cash contribution if the buy or sell and both are aware of the
contemporaneous written acknowledg- conditions of the sale. For more details • Any conditions attached to the gift.
ment doesn't include that information. on determining the value of donated If the gift of property is $250 or
Qualified Contributions property, see Pub. 561. more, you must also have a contempora-
neous written acknowledgment from the
Deduction more than $500. If the
In general, you can elect to treat gifts by amount of your deduction is more than charity. See Gifts of $250 or more, earli-
cash or check as qualified contributions $500, you must complete and attach er, for more information. Form 8283
if the gift was paid in 2022 to a qualified Form 8283. For this purpose, the doesn't satisfy the contemporaneous
charitable organization. This election “amount of your deduction” means your written acknowledgment requirement,
isn't available for contributions to an or- deduction before applying any income and a contemporaneous written ac-
ganization described in IRC 509(a)(3) or limits that could result in a carryover of knowledgment isn't a substitute for the
for the establishment of a new, or main- contributions. other records you may need to keep if
tenance of an existing, donor-advised you gave property.
fund. For details, see Pub. 526. Contribution of motor vehicle, boat, If your total deduction for gifts
or airplane. If you deduct more than of property is over $500, you
Qualified contributions are not sub- $500 for a contribution of a motor vehi- !
gave less than your entire in-
CAUTION
ject to a limitation based on a percentage cle, boat, or airplane, you must also at- terest in the property, or you made a
of adjusted gross income; however, cer- tach a statement from the charitable or-
tain limits may apply if your qualified ganization to your paper return. The or- qualified conservation contribution,
your records should contain additional
contributions are more than the amount ganization may use Form 1098-C to pro-
on Form 1040 or 1040-SR, line 11, mi- vide the required information. If your to- information. See Pub. 526 for details.
nus all other allowable contributions. tal deduction is over $5,000 ($500 for
For details, see Pub. 526. certain contributions of clothing and Line 13
household items (discussed next)), you
Include any contributions that you may also have to get appraisals of the Carryover From Prior Year
elect to treat as qualified contributions in values of the donated property. See
the total amount reported on line 11. In- Form 8283 and its instructions for de- You may have contributions that you
dicate the election by also entering the tails. couldn't deduct in an earlier year be-
amount of your qualified contributions cause they exceeded the limits on the
on the dotted line next to the line 11 en- Contributions of clothing and house- amount you could deduct. In most cases,
try space. hold items. A deduction for these con- you have 5 years to use contributions

A-11