It is almost the end of the year!  Expert Carrie Houchins-Witt answers your tax questions about charitable contributions.

You may have recently seen Carrie Houchins-Witt onstage at Riverside Theatre in Kimberly Akimbo, Good People or Walking the Wire but she's not just a talented actor, she's also a financial planning and tax professional based in Coralville. She's generously created this guide about end of the year contributions.  You can find out more about Carrie at the bottom of this post, or at her website, www.houchinswitt.com.

Carrie Houchins-Witt in KIMBERLY AKIMBO; photo by Bob Goodfellow

FAQs: Charitable Contributions 

As the year comes to a close, the most common question I am asked by my clients is “What can I do before the end of the year to improve my tax situation?”  One of the easiest strategies to employ is increased charitable giving – and since one of my favorite charities is Riverside Theatre, I thought an end-of-the-year blog addressing IRS rules on, and tax benefits of charitable donations, might help theatre lovers in their decisions about donating to the Riverside Theatre in 2014. 
  
Q:        Who can benefit from charitable giving?
A:        Besides the warm, fuzzy feeling we all get from supporting an important cause, some taxpayers are able to deduct charitable donations on their tax returns.  If you file a Schedule A for itemized deductions, you can deduct qualified charitable contributions. 

Q:        How can I make a donation to Riverside Theatre?
A:        Donate online at http://www.riversidetheatre.org/donate/.  Send checks to:

Riverside Theatre
213 N Gilbert Street
Iowa City IA  52245 

Q:        How much can I donate?
A:        There is no limit to how much a taxpayer can donate, but there is a limit to how much can be deducted.  Up to 50% of the taxpayer’s adjusted gross income for the year is deductible. 

Q:        What types of donations are deductible?          
A:        Donations of cash and property are deductible.  Used property must be in good condition or better, except under certain circumstances.  You may also deduct mileage when traveling to charitable events or volunteering (including ushering!).  Check with Riverside to see what is on their “wish list” of donations! 

Q:        How much can I deduct for donating used property?
A:        Generally, the fair market value of the property is deductible.  This is sometimes referred to as the “thrift store value” - how much would it sell for at a thrift store?  If the value is more than $5,000, you must have a qualified written appraisal stating the value. 

Q:        Is there anything I cannot deduct?
A:        Of course!  You cannot deduct a contribution from which you benefit.  For instance, if you attend a performance this holiday season, you cannot deduct the cost of your ticket because you received the benefit of entertainment and a fantastic show.  Also, you cannot deduct the value of your own time or services.  So if you volunteer at the theatre, you cannot deduct the time you spend volunteering. 

Q:        What records do I need to keep?
A:        For a donation of cash, check, or credit card, you must keep either a bank record or a receipt from the organization.  You will receive a receipt for all donations to the Riverside Theatre. 

As with all tax rules, there are many particulars and exceptions to the information detailed above.  Please note that this is not specific tax advice, but a general guideline. 

If you still have questions about charitable contributions, I am happy to talk to you about your particular situation.  Contact me at carrie@houchinswitt.com or 319-359-0439. Happy Holidays!

2140 Norcor Avenue, Suite 109, Coralville IA  52241
www.houchinswitt.com     319.359.0439

Carrie Houchins-Witt, CFP ®, EA is not only a Coralville-based financial planning and tax professional, but an active member of our local theatre community whether performing on stage in a Riverside show, ushering, or serving as a member of the City of Coralville’s Arts Commission. 

For more information, contact her at carrie@houchinswitt.com or check out her website at www.houchinswitt.com.