Charity Begins at Home — So Let’s Get Started!
Too often business owners as well as individuals do a mad scramble in January looking for ways to lower their tax payouts. They’ll fumble through a drawer searching for proof of a donation they made to a church or charity. Putting a simple system in place now will help alleviate stress later. Plus, there are more deductions than you think so it really pays to:
Get Organized: Find a large manila envelope (even a shoebox is fine) and label it, “2015 Charitable Donations.” Next, place it in your office on a shelf but somewhere where you’ll be able to see it or easily find it. As you make your donations to your church, the Salvation Army and other non-profits, note the date and amount on your receipt and put it in the box or envelope.
Get specific: Did you know that you could deduct the cost of using your vehicle if you volunteer your time or provide a service to a qualified charitable, educational or nonprofit organization? Keep a separate mileage sheet for each organization that you wish to include as a deduction and give it to your tax preparer in January.
Here are a few other deductions that you may include as part of your charitable/nonprofit donations:
✓ Parking and tolls
✓ Office supplies
✓ Travel expenses
For some of these expenses you may need acknowledgement from the organization that these items were required but not reimbursed.
It’s easier to organize now than hunt and search later. And you can save a lot of money in the end.
Do your receipts $500? Call me today so we can clarify your charitable deductions.