Charitable Donations - Cash and Noncash

Overview

A charitable contribution is defined by the IRS as a donation or gift to, or for the use of, a qualified organization. Under this definition, the contribution is voluntary and is made without getting, or expecting to get, anything of equal value. Further, charitable contributions made by taxpayers can be of different types.

This course explains how to claim deductions for cash and noncash charitable contributions. Also discussed are organizations that are qualified to receive deductible charitable contributions, which include nonprofit groups that are religious, charitable, educational, scientific, or literary, or that work to prevent cruelty to children or animals.

The course goes on to explain the types of contributions that taxpayers can deduct, how much they can deduct, what records to keep, and how to report charitable contributions. The course concludes with a review and discussion of three Tax Court cases in which taxpayers contested charitable contribution deductions that were initially disallowed by the IRS.

Relevant CARES and SECURE Act information is included.

Learning Objectives

Upon completion of this course, students should be able to:

  • identify the types of organizations that qualify to receive deductible charitable contributions
  • recognize the types of contributions that can and cannot be deducted
  • apply the rules relating to the deductibility of contributions of property of different types, including the correct method of valuation that applies in each case
  • identify the types of records relating to charitable contributions that taxpayers must keep, and the supporting documentation that may be required for submission

Tax Year: 2020

Designed For

CPAs, CMAs, CFEs, CFPs, EAs, and other tax professionals and financial advisors

Prerequisites

Familiarity with Form 1040 Schedule A and the general landscape of community groups, religious and educational organizations, and other charitable institutions in the U.S.


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