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Publication 526 Cat. No. 15050A Contents

What's New ...... 1 Department of the Charitable Reminders ...... 1 Treasury Internal Introduction ...... 2 Revenue Contributions Service Organizations That Qualify To Receive Deductible Contributions ...... 2

For use in preparing Contributions You Can Deduct ...... 3 2020 Returns Contributions You Can't Deduct ...... 7 Contributions of Property ...... 8

When To Deduct ...... 14

Limits on Deductions ...... 14

Substantiation Requirements ...... 20

How To Report ...... 22

How To Get Tax Help ...... 23

Index ...... 26

Future Developments For the latest information about developments related to Pub. 526 (such as legislation enacted after we release it), go to IRS.gov/Pub526.

What's New Cash contributions if you don’t itemize de- ductions. If you don’t itemize your deductions on Schedule A (Form 1040), you may qualify to take a deduction for contributions of up to $300. See Cash contributions for individuals who do not itemize deductions, later. Temporary suspension of limits for cash contributions. Certain cash contributions you made are not subject to the 60% limit for cash contributions. See Qualified cash contributions for 2020, later. Temporary increase in limits on contribu- tions of food inventory. The limit on contribu- tions of food inventory has increased from 15% to 25% for business taxpayers. See Food In- ventory, later.

Reminders Disaster relief. You can deduct contributions for flood relief, hurricane relief, or other disaster relief to a qualified organization (defined under Organizations That Qualify To Receive Deducti- ble Contributions). However, you can't deduct contributions earmarked for relief of a particular Get forms and other information faster and easier at: individual or family. See Pub. 976, Disaster Re- • IRS.gov (English) • IRS.gov/Korean (한국어) lief, for more information. • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) Pub. 3833, Disaster Relief, Providing Assis- • IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) tance Through Charitable Organizations, has more information about disaster relief, including

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how to establish a new charitable organization. limited if certain rules and limits explained in Getting tax forms, instructions, and pub- You can also find more information on IRS.gov. this publication apply to you. lications. Visit IRS.gov/Forms to download Enter “disaster relief” in the search box. current and prior-year forms, instructions, and Exception: You may be eligible to deduct a publications. Qualified disaster area. A 2020 qualified dis- cash contribution even if you don’t itemize de- aster area is any area in which a major disaster ductions on Schedule A (Form 1040). See Cash Ordering tax forms, instructions, and was declared before February 26, 2021, by the contributions for individuals who do not itemize publications. Go to IRS.gov/OrderForms to President under section 401 of the Stafford Act deductions, next. order current forms, instructions, and publica- and that occurred after December 27, 2019, tions; call 800-829-3676 to order prior-year and before December 28, 2020. However, a Cash contributions for individuals who do forms and instructions. The IRS will process qualified disaster area doesn’t include any area not itemize deductions. For tax years begin- your order for forms and publications as soon declared a disaster only because of the Coro- ning in 2020, cash contributions up to $300 can as possible. Do not resubmit requests you’ve navirus Disease (COVID-19). See Temporary be claimed on Form 1040 or 1040-SR, line 10b. already sent us. You can get forms and publica- suspension of limits, later, for additional infor- Enter the total amount of your contribution on tions faster online. mation about 2018 and 2019 disasters. line 10b. Don’t enter more than: Temporary suspension of limits. Certain • $300 if single, head of household, or quali- Useful Items cash contributions you made for relief efforts for fying widow(er); You may want to see: 2018 and 2019 disasters are not subject to the • $300 if married filing jointly; or 60% limit for cash contributions. See Qualified • $150 if married filing separately. contributions for relief efforts for 2018 and 2019 Publication In order to claim the contribution, you must disasters, later. meet the following requirements. 561 561 Determining the Value of Donated Virginia Beach Strong Act. A special rule ap- Property plies to cash contributions made on or after 1. You cannot itemize deductions on Sched- May 31, 2019, and before June 1, 2021, for the ule A (Form 1040); and 976 976 Disaster Relief relief of the families of dead or wounded victims 2. The charitable contribution must be: of the mass shooting in Virginia Beach, Virginia, Forms (and Instructions) a. Paid in cash or by check. on May 31, 2019. See Contributions You Can Schedule A (Form 1040) Schedule A (Form 1040) Itemized Deduct, later. b. Be paid to an organization described Deductions Reduced deductibility of state and local tax later under First category of qualified

8283 8283 Noncash Charitable Contributions credits. If you make a payment or transfer organizations (50% limit organiza- property to or for the use of a qualified organiza- tions) (other than certain private foun- See How To Get Tax Help near the end of this tion and you receive or expect to receive a state dations described in section 509(a)(3) publication for information about getting these or local tax credit or a state or local tax deduc- or for the establishment of a new, or publications and forms. tion in return, your charitable contribution de- maintenance of an existing, donor ad- duction may be reduced. See State or local tax vised fund as described in section credit, later. 4966(d)(2)). Organizations That Photographs of missing children. The IRS is Contributions of noncash property and contribu- a proud partner with the National Center for tions carried forward from prior years don’t Qualify To Receive Missing & Exploited Children® (NCMEC). Pho- qualify for this deduction. tographs of missing children selected by the Deductible For records you must keep, see Substantia- Center may appear in this publication on pages tion Requirements, later. Contributions that would otherwise be blank. You can help bring these children home by looking at the Note. You cannot claim the deduction on You can deduct your contributions only if you photographs and calling 800-THE-LOST Form 1040 or 1040-SR, line 10b, and file make them to a qualified organization. (800-843-5678) or visiting Schedule A (Form 1040). You may benefit from www.missingkids.com if you recognize a child. itemizing deductions if your itemized deduc- How to check whether an organization can tions are greater than the standard deduction. If receive deductible charitable contributions. Introduction you have a choice, you should generally use You can ask any organization whether it is a the method that gives you the lower tax. qualified organization, and most will be able to This publication explains how individuals claim tell you. You can also check by going to a deduction for charitable contributions. It dis- Comments and suggestions. We welcome IRS.gov/TEOS. This online tool will enable you cusses the types of organizations to which you your comments about this publication and your to search for qualified organizations. can make deductible charitable contributions suggestions for future editions. and the types of contributions you can deduct. It You can send us comments through Types of Qualified also discusses how much you can deduct, what IRS.gov/FormComments. Or, you can write to: records you must keep, and how to report chari- Internal Revenue Service, Tax Forms and Pub- Organizations table contributions. lications, 1111 Constitution Ave. NW, IR-6526, A charitable contribution is a donation or gift Washington, DC 20224. Generally, only the following types of organiza- tions can be qualified organizations. to, or for the use of, a qualified organization. It is Although we can’t respond individually to voluntary and is made without getting, or ex- each comment received, we do appreciate your 1. A community chest, corporation, trust, pecting to get, anything of equal value. feedback and will consider your comments and fund, or foundation organized or created in suggestions as we revise our tax forms, instruc- or under the laws of the United States, any Qualified organizations. Qualified organiza- tions, and publications. Do not send tax ques- state, the District of Columbia, or any pos- tions include nonprofit groups that are religious, tions, tax returns, or payments to the above ad- session of the United States (including Pu- charitable, educational, scientific, or literary in dress. erto Rico). It must, however, be organized purpose, or that work to prevent cruelty to chil- and operated only for charitable, religious, dren or animals. You will find descriptions of Getting answers to you tax questions. If scientific, literary, or educational purpo- these organizations under Organizations That you have a tax question not answered by this ses, or for the prevention of cruelty to chil- Qualify To Receive Deductible Contributions. publication or the How To Get Tax Help section dren or animals. Certain organizations that at the end of this publication, go to the IRS In- foster national or international amateur Schedule A (Form 1040) required. Gener- teractive Tax Assistant page at IRS.gov/ sports competition also qualify. ally, to deduct a charitable contribution, you Help/ITA where you can find topics by using the must itemize deductions on Schedule A (Form search feature or viewing the categories listed. 2. War veterans' organizations, including 1040). The amount of your deduction may be posts, auxiliaries, trusts, or foundations,

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organized in the United States or any of its Table 1. Examples of Charitable Contributions—A Quick Check possessions (including Puerto Rico). Use the following lists for a quick check of whether you can deduct a 3. Domestic fraternal societies, orders, and contribution. See the rest of this publication for more information and associations operating under the lodge additional rules and limits that may apply. system. (Your contribution to this type of organization is deductible only if it is to be Deductible As Not Deductible As used solely for charitable, religious, scien- Charitable Contributions Charitable Contributions tific, literary, or educational purposes, or Money or property you give to: Money or property you give to: for the prevention of cruelty to children or • Churches, synagogues, temples, • Civic leagues, social and sports animals.) mosques, and other religious clubs, labor unions, and chambers of organizations commerce 4. Certain nonprofit cemetery companies or • Federal, state, and local • Foreign organizations (except certain corporations. (Your contribution to this governments, if your contribution is Canadian, Israeli, and Mexican type of organization isn't deductible if it solely for public purposes (for charities) can be used for the care of a specific lot or example, a gift to reduce the public • Groups that are run for personal mausoleum crypt.) debt or maintain a public park) profit • Nonprofit schools and hospitals • Groups whose purpose is to lobby for 5. The United States or any state, the District • The Salvation Army, American Red Cross, CARE, law changes of Columbia, a U.S. possession (including Goodwill Industries, United Way, Boy Scouts of • Homeowners' associations Puerto Rico), a political subdivision of a America, Girl Scouts of America, Boys and Girls • Individuals state or U.S. possession, or an Indian Clubs of America, etc. • Political groups or candidates for tribal government or any of its subdivisions • War veterans' groups public office

that perform substantial government func- Expenses paid for a student living with you, sponsored by a Cost of raffle, bingo, or lottery tickets tions. (Your contribution to this type of or- qualified organization ganization is deductible only if it is to be Dues, fees, or bills paid to country clubs, lodges, fraternal used solely for public purposes.) Out-of-pocket expenses when you serve a qualified orders, or similar groups Example 1. You contribute cash to organization as a volunteer your city's police department to be used Tuition as a reward for information about a crime. The city police department is a qualified Value of your time or services

organization, and your contribution is for a Value of blood given to a blood bank public purpose. You can deduct your con- tribution. Example 2. You make a voluntary Canadian charities. You may be able to de- contribution to the social security trust duct contributions to certain Canadian charita- fund, not earmarked for a specific ac- ble organizations covered under an income tax Contributions count. Because the trust fund is part of the treaty with Canada. To deduct your contribution You Can Deduct U.S. Government, you contributed to a to a Canadian charity, you must generally have qualified organization. You can deduct income from sources in Canada. See Pub. 597, Generally, you can deduct contributions of your contribution. Information on the United States–Canada In- money or property you make to, or for the use come Tax Treaty, for information on how to fig- of, a qualified organization. A contribution is “for Examples. The following list gives some ex- ure your deduction. amples of qualified organizations. the use of” a qualified organization when it is • Churches, a convention or association of Mexican charities. Under the U.S.–Mexico in- held in a legally enforceable trust for the quali- churches, temples, synagogues, mosques, come tax treaty, a contribution to a Mexican fied organization or in a similar legal arrange- and other religious organizations. charitable organization may be deductible, but ment. • Most nonprofit charitable organizations only if and to the extent the contribution would The contributions must be made to a quali- such as the American Red Cross and the have been treated as a charitable contribution fied organization and not set aside for use by a United Way. to a public charity created or organized under specific person. • Most nonprofit educational organizations, U.S. law. To deduct your contribution to a Mexi- including the Boy Scouts of America, Girl can charity, you must have income from sour- Virginia Beach Strong Act. If you made a Scouts of America, colleges, and muse- ces in Mexico. The limits described in Limits on contribution for the relief of the families of the ums. This also includes nonprofit daycare Deductions, later, apply and are figured using dead or wounded victims of the mass shooting centers that provide childcare to the gen- your income from Mexican sources. eral public if substantially all the childcare in Virginia Beach, Virginia, on May 31, 2019, you may be able to deduct that contribution. In is provided to enable parents and guardi- Israeli charities. Under the U.S.–Israel in- order to deduct the contribution, it must have ans to be gainfully employed. However, if come tax treaty, a contribution to an Israeli been made: your contribution is a substitute for tuition charitable organization is deductible if and to In cash or check; or other enrollment fee, it isn't deductible the extent the contribution would have been • Between May 31, 2019, and June 1, 2021; as a charitable contribution, as explained treated as a charitable contribution if the organi- • and later under Contributions You Can't De- zation had been created or organized under For the relief of the families of dead or duct. U.S. law. To deduct your contribution to an Isra- • wounded victims of the mass shooting in • Nonprofit hospitals and medical research eli charity, you must have income from sources Virginia Beach, Virginia, on May 31, 2019. organizations. in Israel. The limits described in Limits on De- • Utility company emergency energy pro- ductions, later, apply. The deduction is also If you made your contribution by grams, if the utility company is an agent for limited to 25% of your adjusted gross income TIP phone, keep your phone bill showing a charitable organization that assists indi- from Israeli sources. the name of who you made the dona- viduals with emergency energy needs. tion to, the date you made the contribution, and • Nonprofit volunteer fire companies. the amount of the contribution. See Substantia- • Nonprofit organizations that develop and tion Requirements, later. maintain public parks and recreation facili- ties. • Civil defense organizations. If you give property to a qualified organiza- tion, you can generally deduct the fair market value (FMV) of the property at the time of the

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contribution. See Contributions of Property, Even if the ticket or other evidence of or local tax deduction exceeds the amount of later. ! payment indicates that the payment is your cash contribution or the fair market value CAUTION a “contribution,” this doesn't mean you of the transferred property, then your charitable Your deduction for charitable contributions can deduct the entire amount. If the ticket contribution deduction is reduced. However, if generally can't be more than 60% of your adjus- shows the price of admission and the amount of the amount of the state or local tax deduction ted gross income (AGI), but in some cases the contribution, you can deduct the contribu- doesn’t exceed the amount of your payment or 20%, 30%, or 50% limits may apply. tion amount. the fair market value of the transferred property, The 60% limit is suspended for certain then no reduction is necessary. TIP cash contributions. See Qualified cash Example. You pay $40 to see a special contributions for 2020 and Qualified showing of a movie for the benefit of a qualified Example 1. You make a cash contribution contributions for relief efforts for 2018 and 2019 organization. Printed on the ticket is “Contribu- of $1,000 to charity Z, a qualified organization. disasters, later. tion—$40.” If the regular price for the movie is Under state law, you are entitled to receive a $8, your contribution is $32 ($40 payment − $8 state tax deduction of $1,000 in return for your Table 1 gives examples of contributions you regular price). payment. The amount of your charitable contri- can and can't deduct. bution deduction to charity Z isn’t reduced. Your State or local tax credit. If you make a pay- charitable contribution deduction to charity Z is $1,000. However, your total contributions may Contributions From ment or transfer property to or for the use of a qualified organization and receive or expect to still be subject to limitations. See Limits on De- Which You Benefit receive a state or local tax credit in return, then ductions, later. the amount treated as a charitable contribution If you receive a benefit as a result of making a deduction is reduced by the amount of the state Membership fees or dues. You may be able contribution to a qualified organization, you can or local tax credit you receive or expect to re- to deduct membership fees or dues you pay to deduct only the amount of your contribution that ceive in consideration for your payment or a qualified organization. However, you can de- is more than the value of the benefit you re- transfer, but an exception may apply. If an ex- duct only the amount that is more than the value ceive. Also see Contributions From Which You ception doesn’t apply, you must reduce your of the benefits you receive. Benefit under Contributions You Can't Deduct, charitable contribution deduction even if you You can't deduct dues, fees, or assess- later. can’t claim the state tax credit in the year. ments paid to country clubs and other social or- ganizations. They aren't qualified organizations. If you pay more than fair market value to a Exception. If the state or local tax credit qualified organization for goods or services, the you receive or expect to receive doesn’t exceed Certain membership benefits can be dis- excess may be a charitable contribution. For 15% of your payment amount or 15% of the fair regarded. Both you and the organization can the excess amount to qualify, you must pay it market value of the transferred property, then disregard the following membership benefits if with the intent to make a charitable contribution. your charitable contribution deduction isn’t re- you get them in return for an annual payment of duced. $75 or less. Example 1. You pay $65 for a ticket to a 1. Any rights or privileges that you can use dinner dance at a church. Your entire $65 pay- Example 1. You make a cash contribution ment goes to the church. The ticket to the din- frequently while you are a member, such of $1,000 to charity X, a qualified organization. as: ner dance has a fair market value of $25. When In return for your payment you receive or expect you buy your ticket, you know its value is less to receive a state tax credit of 70% of your a. Free or discounted admission to the than your payment. To figure the amount of $1,000 contribution. The amount of your chari- organization's facilities or events, your charitable contribution, subtract the value table contribution to charity X is reduced by b. Free or discounted parking, of the benefit you receive ($25) from your total $700 (70% of $1,000). The result is your chari- payment ($65). You can deduct $40 as a chari- table contribution deduction to charity X can’t c. Preferred access to goods or serv- table contribution to the church. exceed $300 ($1,000 donation - $700 state tax ices, and credit). The reduction applies even if you can’t Example 2. At a fundraising auction con- d. Discounts on the purchase of goods claim the state tax credit for that year. Your de- and services. ducted by a charity, you pay $600 for a week's ductible charitable contribution to charity X is stay at a beach house. The amount you pay is $300. Your total contributions may still be sub- But, item (1) doesn’t include rights to no more than the fair rental value. You haven't ject to limitations. See Limits on Deductions, purchase tickets for seating at an athletic made a deductible charitable contribution. later. event in an athletic stadium of a college or university as a result of a contribution to Charity benefit events. If you pay a qualified Example 2. You donate a painting to char- such institution. organization more than fair market value for the ity Y, a qualified organization. At the time of the 2. Admission, while you are a member, to right to attend a charity ball, banquet, show, donation, the painting has a fair market value of events open only to members of the or- sporting event, or other benefit event, you can $100,000. In return for the painting, you receive ganization if the organization reasonably deduct only the amount that is more than the or expect to receive a state tax credit of 10% of projects that the cost per person (exclud- value of the privileges or other benefits you re- the fair market value of the painting. The state ing any allocated overhead) isn't more ceive. tax credit is $10,000 (10% of $100,000). The than $11.20. If there is an established charge for the amount of your state tax credit does not exceed event, that charge is the value of your benefit. If 15% of the fair market value of the painting. As there is no established charge, the reasonable a result, your charitable contribution deduction value of the right to attend the event is the value to charity Y is not reduced. Your deductible Token items. You don't have to reduce your of your benefit. Whether you use the tickets or charitable contribution for your noncash contri- contribution by the value of any benefit you re- other privileges has no effect on the amount bution to charity Y is $100,000. However, your ceive if both of the following are true. you can deduct. However, if you return the total contributions may still be subject to limita- 1. You receive only a small item or other ben- ticket to the qualified organization for resale, tions. See Limits on Deductions, later. you can deduct the entire amount you paid for efit of token value. the ticket. State or local tax deduction. If you make a 2. The qualified organization correctly deter- payment or transfer property to a qualified or- mines that the value of the item or benefit ganization and receive or expect to receive a you received isn't substantial and informs state or local tax deduction in return, then the you that you can deduct your payment in amount of your charitable contribution deduc- full. tion to the organization may be reduced in some circumstances. If the amount of the state

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Table 2. Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. All of the rules explained in this publication also apply. See, in particular, Out-of-Pocket Expenses in Giving Services.

Question Answer I volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid No, you can't deduct the value of your time or services. $10 an hour for the same work. Can I deduct $60 a week for my time? The office is 30 miles from my home. Can I deduct any of my car expenses for these trips? Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. If you don't want to figure your actual costs, you can deduct 14 cents for each mile. I volunteer as a Red Cross nurse's aide at a hospital. Can I deduct the cost of the uniforms I Yes, you can deduct the cost of buying and cleaning your uniforms if must wear? the hospital is a qualified organization, the uniforms aren't suitable for everyday use, and you must wear them when volunteering. I pay a babysitter to watch my children while I volunteer for a qualified organization. Can I No, you can't deduct payments for childcare expenses as a deduct these costs? charitable contribution, even if you would be unable to volunteer without childcare. (If you have childcare expenses so you can work for pay, see Pub. 503, Child and Dependent Care Expenses.)

The organization determines whether the value of the organization to provide educational b. He or she filed a joint return; or of an item or benefit is substantial by using Rev- opportunities for the student, c. You, or your spouse if filing jointly, enue Procedures 90-12 and 92-49 and the in- 2. Isn't your relative (defined later) or de- could be claimed as a dependent on flation adjustment in Revenue Procedure pendent (also defined later), and someone else's 2020 return. 2019-44. 3. Is a full-time student in the twelfth or any Foreign students brought to this coun- Written statement. A qualified organization lower grade at a school in the United try under a qualified international edu- must give you a written statement if you make a States. cation exchange program and placed payment of more than $75 that is partly a contri- in American homes for a temporary period gen- You can deduct up to $50 a month for bution and partly for goods or services. The erally aren't U.S. residents and can't be claimed TIP each full calendar month the student statement must say you can deduct only the as dependents. amount of your payment that is more than the lives with you. Any month when condi- value of the goods or services you received. It tions (1) through (3) are met for 15 or more days Qualifying expenses. You may be able to de- must also give you a good faith estimate of the counts as a full month. duct the cost of books, tuition, food, clothing, value of those goods or services. transportation, medical and dental care, enter- The organization can give you the statement Qualified organization. For these purposes, a tainment, and other amounts you actually either when it solicits or when it receives the qualified organization can be any of the organi- spend for the well-being of the student. payment from you. zations described earlier under Types of Quali- fied Organizations, except those in (4) and (5). Expenses that don't qualify. You can't de- Exception. An organization won't have to For example, if you are providing a home for a duct depreciation on your home, the fair market give you this statement if one of the following is student as part of a state or local government value of lodging, and similar items not consid- true. program, you can't deduct your expenses as ered amounts actually spent by you. Nor can charitable contributions. But see Foster parents 1. The organization is: you deduct general household expenses, such under Out-of-Pocket Expenses in Giving Serv- as taxes, insurance, and repairs. a. A governmental organization descri- ices, later, if you provide the home as a foster bed in (5) under Types of Qualified parent. Reimbursed expenses. In most cases, Organizations, earlier, or you can't claim a charitable contribution deduc- b. An organization formed only for reli- Relative. The term “relative” means any of the tion if you are compensated or reimbursed for gious purposes, and the only benefit following persons. any part of the costs of having a student live you receive is an intangible religious • Your child, stepchild, foster child, or a de- with you. However, you may be able to claim a benefit (such as admission to a reli- scendant of any of them (for example, your charitable contribution deduction for the unreim- gious ceremony) that generally isn't grandchild). A legally adopted child is con- bursed portion of your expenses if you are reim- sold in commercial transactions out- sidered your child. bursed only for an extraordinary or one-time side the donative context. • Your brother, sister, half brother, half sis- item, such as a hospital bill or vacation trip, you ter, stepbrother, or stepsister. paid in advance at the request of the student's 2. You receive only items whose value isn't • Your father, mother, grandparent, or other parents or the sponsoring organization. substantial, as described under Token direct ancestor. items, earlier. • Your stepfather or stepmother. Mutual exchange program. You can't de- duct the costs of a foreign student living in your 3. You receive only membership benefits that • A son or daughter of your brother or sister. home under a mutual exchange program can be disregarded, as described under • A brother or sister of your father or mother. through which your child will live with a family in Membership fees or dues, earlier. • Your son-in-law, daughter-in-law, fa- ther-in-law, mother-in-law, brother-in-law, a foreign country. or sister-in-law. Expenses Paid for Reporting expenses. For a list of what you Student Living With You Dependent. For this purpose, the term “de- must file with your return if you deduct expen- pendent” means: ses for a student living with you, see Reporting expenses for student living with you under How You may be able to deduct some expenses of 1. A person you can claim as a dependent, To Report, later. having a student live with you. You can deduct or qualifying expenses for a foreign or American student who: 2. A person you could have claimed as a de- Out-of-Pocket Expenses pendent except that: 1. Lives in your home under a written agree- in Giving Services ment between you and a qualified organi- a. He or she received gross income of zation (defined later) as part of a program $4,300 or more;

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Although you can't deduct the value of your Example. You cared for a foster child be- Example 3. You work for several hours services given to a qualified organization, you cause you wanted to adopt her, not to benefit each morning on an archeological dig spon- may be able to deduct some amounts you pay the agency that placed her in your home. Your sored by a qualified organization. The rest of in giving services to a qualified organization. unreimbursed expenses aren't deductible as the day is free for recreation and sightseeing. The amounts must be: charitable contributions. You can't take a charitable contribution deduc- • Unreimbursed; tion even though you work very hard during • Directly connected with the services; Church deacon. You can deduct as a charita- those few hours. • Expenses you had only because of the ble contribution any unreimbursed expenses services you gave; and you have while in a permanent diaconate pro- Example 4. You spend the entire day at- • Not personal, living, or family expenses. gram established by your church. These expen- tending a qualified organization's regional meet- ses include the cost of vestments, books, and ing as a chosen representative. In the evening Table 2 contains questions and answers transportation required in order to serve in the you go to the theater. You can claim your travel that apply to some individuals who volunteer program as either a deacon candidate or an or- expenses as charitable contributions, but you their services. dained deacon. can't claim the cost of your evening at the thea- ter. Underprivileged youths selected by charity. Car expenses. You can deduct as a charitable You can deduct reasonable unreimbursed contribution any unreimbursed out-of-pocket Daily allowance (per diem). If you provide out-of-pocket expenses you pay to allow under- expenses, such as the cost of gas and oil, di- services for a qualified organization and receive privileged youths to attend athletic events, mov- rectly related to the use of your car in giving a daily allowance to cover reasonable travel ex- ies, or dinners. The youths must be selected by services to a charitable organization. You can't penses, including meals and lodging while a charitable organization whose goal is to re- deduct general repair and maintenance expen- away from home overnight, you must include in duce juvenile delinquency. Your own similar ex- ses, depreciation, registration fees, or the costs income any part of the allowance that is more penses in accompanying the youths aren't de- of tires or insurance. than your deductible travel expenses. You may ductible. If you don't want to deduct your actual ex- be able to deduct any necessary travel expen- penses, you can use a standard mileage rate of ses that are more than the allowance. Conventions. If a qualified organization se- 14 cents a mile to figure your contribution. lects you to attend a convention as its represen- Deductible travel expenses. These in- tative, you can deduct your unreimbursed ex- You can deduct parking fees and tolls clude: penses for travel, including reasonable whether you use your actual expenses or the • Air, rail, and bus transportation; amounts for meals and lodging, while away standard mileage rate. • Out-of-pocket expenses for your car; from home overnight for the convention. How- You must keep reliable written records of • Taxi fares or other costs of transportation ever, see Travel, later. your car expenses. For more information, see between the airport or station and your ho- You can't deduct personal expenses for Car expenses under Substantiation Require- tel; sightseeing, fishing parties, theater tickets, or ments, later. • Lodging costs; and nightclubs. You also can't deduct travel, meals • The cost of meals. Travel. Generally, you can claim a charitable and lodging, and other expenses for your Because these travel expenses aren't busi- contribution deduction for travel expenses nec- spouse or children. ness-related, they aren't subject to the same essarily incurred while you are away from home limits as business-related expenses. For infor- You can't deduct your travel expenses in at- performing services for a qualified organization mation on business travel expenses, see Travel tending a church convention if you go only as a only if there is no significant element of per- in Pub. 463, Travel, Gift, and Car Expenses. member of your church rather than as a chosen sonal pleasure, recreation, or vacation in the representative. You can, however, deduct unre- travel. This applies whether you pay the expen- imbursed expenses that are directly connected ses directly or indirectly. You are paying the ex- Expenses of Whaling with giving services for your church during the penses indirectly if you make a payment to the Captains convention. qualified organization and the organization pays for your travel expenses. Uniforms. You can deduct the cost and up- You may be able to deduct as a charitable con- keep of uniforms that aren't suitable for every- The deduction for travel expenses won't be tribution any reasonable and necessary whaling day use and that you must wear while perform- denied simply because you enjoy providing expenses you pay during the year to carry out ing donated services for a qualified services to the qualified organization. Even if sanctioned whaling activities. The deduction is organization. you enjoy the trip, you can take a charitable limited to $10,000 a year. To claim the deduc- contribution deduction for your travel expenses tion, you must be recognized by the Alaska Es- Foster parents. You may be able to deduct as if you are on duty in a genuine and substantial kimo Whaling Commission as a whaling captain a charitable contribution some of the costs of sense throughout the trip. However, if you have charged with the responsibility of maintaining being a foster parent (foster care provider) if only nominal duties, or if for significant parts of and carrying out sanctioned whaling activities. you have no profit motive in providing the foster the trip you don't have any duties, you can't de- care and aren't, in fact, making a profit. A quali- duct your travel expenses. Sanctioned whaling activities are subsis- fied organization must select the individuals you tence bowhead whale hunting activities con- take into your home for foster care. Example 1. You are a troop leader for a ducted under the management plan of the tax-exempt youth group and you take the group You can deduct expenses that meet both of Alaska Eskimo Whaling Commission. on a camping trip. You are responsible for over- the following requirements. seeing the setup of the camp and for providing Whaling expenses include expenses for: 1. They are unreimbursed out-of-pocket ex- adult supervision for other activities during the • Acquiring and maintaining whaling boats, penses to feed, clothe, and care for the entire trip. You participate in the activities of the weapons, and gear used in sanctioned foster child. group and enjoy your time with them. You over- whaling activities; see the breaking of camp and you transport the 2. They are incurred primarily to benefit the • Supplying food for the crew and other pro- group home. You can deduct your travel expen- qualified organization. visions for carrying out these activities; and ses. • Storing and distributing the catch from Unreimbursed expenses that you can't de- these activities. duct as charitable contributions may be consid- Example 2. You sail from one island to an- ered support provided by you in determining other and spend 8 hours a day counting whales You must keep records showing the whether you can claim the foster child as a de- and other forms of marine life. The project is time, place, date, amount, and nature pendent. For details, see Pub. 501, Depend- sponsored by a qualified organization. In most RECORDS of the expenses. For details, see Reve- ents, Standard Deduction, and Filing Informa- circumstances, you can't deduct your expen- nue Procedure 2006-50, 2006-47 I.R.B. 944, tion. ses. available at IRS.gov/irb/ 2006-47_IRB#RP-2006-50.

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If you made a contribution for the relief tickets (or the right to buy tickets) to an ath- TIP of the families of victims of the mass letic event in an athletic stadium of the col- Contributions shooting in Virginia Beach, Virginia, on lege or university. You Can't Deduct May 31, 2019, and meet the requirements, de- • Contributions from which you receive or scribed earlier under Virginia Beach Strong Act, expect to receive a credit or deduction this contribution isn’t considered a contribution against state or local taxes unless an ex- There are some contributions you can't deduct to a specific individual. ception applies. See State or local tax and others you can deduct only in part. credit and State or local tax deduction, ear- You can't deduct as a charitable contribu- lier. tion: Contributions to • Contributions for lobbying. This includes Nonqualified Organizations amounts you earmark for use in, or in con- 1. A contribution to a specific individual, nection with, influencing specific legisla- tion. 2. A contribution to a nonqualified organiza- You can't deduct contributions to organizations Contributions to a retirement home for tion, that aren't qualified to receive tax-deductible • room, board, maintenance, or admittance. contributions, including the following. 3. The part of a contribution from which you Also, if the amount of your contribution de- receive or expect to receive a benefit, 1. Certain state bar associations if: pends on the type or size of apartment you will occupy, it isn't a charitable contribu- 4. The value of your time or services, a. The bar isn't a political subdivision of tion. a state; 5. Your personal expenses, • Costs of raffles, bingo, lottery, etc. You 6. A qualified charitable distribution from an b. The bar has private, as well as public, can't deduct as a charitable contribution individual retirement arrangement (IRA), purposes, such as promoting the pro- amounts you pay to buy raffle or lottery fessional interests of members; and tickets or to play bingo or other games of 7. Appraisal fees, chance. For information on how to report c. Your contribution is unrestricted and gambling winnings and losses, see Expen- 8. Certain contributions to donor-advised can be used for private purposes. funds, or ses You Can Deduct in Pub. 529. 2. Chambers of commerce and other busi- • Dues to fraternal orders and similar 9. Certain contributions of partial interests in ness leagues or organizations. groups. However, see Membership fees or property. dues under Contributions From Which You 3. Civic leagues and associations. Detailed discussions of these items follow. Benefit, earlier. 4. Country clubs and other social clubs. • Tuition, or amounts you pay instead of tui- tion. You can't deduct as a charitable con- 5. Foreign organizations other than certain Contributions to Individuals tribution amounts you pay as tuition even if Canadian, Israeli, or Mexican charitable you pay them for children to attend paro- organizations. (See Canadian charities, You can't deduct contributions to specific indi- chial schools or qualifying nonprofit day- Mexican charities, and Israeli charities un- viduals, including the following. care centers. You also can't deduct any der Organizations That Qualify To Receive • Contributions to fraternal societies made fixed amount you must pay in addition to, Deductible Contributions, earlier.) Also, for the purpose of paying medical or burial or instead of, tuition to enroll in a private you can't deduct a contribution you made expenses of members. school, even if it is designated as a “dona- to any qualifying organization if the contri- • Contributions to individuals who are needy tion.” bution is earmarked to go to a foreign or- or worthy. You can't deduct these contribu- • Contributions connected with split-dollar ganization. However, certain contributions tions even if you make them to a qualified insurance arrangements. You can't deduct to a qualified organization for use in a pro- organization for the benefit of a specific any part of a contribution to a qualified or- gram conducted by a foreign charity may person. But you can deduct a contribution ganization if, in connection with the contri- be deductible as long as they aren't ear- to a qualified organization that helps needy bution, the organization directly or indi- marked to go to the foreign charity. For the or worthy individuals if you don't indicate rectly pays, has paid, or is expected to pay contribution to be deductible, the qualified that your contribution is for a specific per- any premium on any life insurance, annu- organization must approve the program as son. ity, or endowment contract for which you, furthering its own exempt purposes and Example. You can deduct contribu- any member of your family, or any other must keep control over the use of the con- tions to a qualified organization for flood person chosen by you (other than a quali- tributed funds. The contribution is also de- relief, hurricane relief, or other disaster re- fied charitable organization) is a benefi- ductible if the foreign charity is only an ad- lief. However, you can’t deduct contribu- ciary. ministrative arm of the qualified tions earmarked for relief of a particular in- Example. You donate money to a organization. dividual or family. qualified organization. The charity uses the • Payments to a member of the clergy that 6. Homeowners' associations. money to purchase a cash value life insur- can be spent as he or she wishes, such as ance policy. The beneficiaries under the in- 7. Labor unions. for personal expenses. surance policy include members of your • Expenses you paid for another person who 8. Political organizations and candidates. family. Even though the charity may even- provided services to a qualified organiza- tually get some benefit out of the insurance tion. policy, you can't deduct any part of the Example. Your son does missionary Contributions From donation. work. You pay his expenses. You can't Which You Benefit claim a deduction for your son's unreim- Qualified Charitable Distributions bursed expenses related to his contribu- If you receive or expect to receive a financial or tion of services. economic benefit as a result of making a contri- A qualified charitable distribution (QCD) is a Payments to a hospital that are for a spe- • bution to a qualified organization, you can't de- distribution made directly by the trustee of your cific patient's care or for services for a spe- duct the part of the contribution that represents individual retirement arrangement (IRA), other cific patient. You can't deduct these pay- the value of the benefit you receive. See Contri- than a SEP or SIMPLE IRA, to certain qualified ments even if the hospital is operated by a butions From Which You Benefit under Contri- organizations. You must have been at least age city, state, or other qualified organization. butions You Can Deduct, earlier. These contri- 701/2 when the distribution was made. Your total butions include the following. QCDs for the year can't be more than $100,000. • Contributions to a college or university if If all the requirements are met, a QCD is non- the amount paid is to (or for the benefit of) taxable, but you can't claim a charitable contri- a college or university in exchange for bution deduction for a QCD. See Pub. 590-B,

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Distributions from Individual Retirement Ar- Cars, Boats, and Airplanes rangements (IRAs), for more information about QCDs. Contributions of The following rules apply to any donation of a Property qualified vehicle. Value of Time or Services A qualified vehicle is: If you contribute property to a qualified organi- • A car or any motor vehicle manufactured You can't deduct the value of your time or serv- zation, the amount of your charitable contribu- mainly for use on public streets, roads, and ices, including: tion is generally the fair market value of the highways; • Blood donations to the American Red property at the time of the contribution. How- • A boat; or Cross or to blood banks, and ever, if the property has increased in value, you • An airplane. • The value of income lost while you work as may have to make some adjustments to the an unpaid volunteer for a qualified organi- amount of your deduction. See Giving Property Deduction more than $500. If you donate a zation. That Has Increased in Value, later. qualified vehicle with a claimed fair market For information about the records you must value of more than $500, you can deduct the Personal Expenses keep and the information you must furnish with smaller of: your return if you donate property, see Substan- • The gross proceeds from the sale of the You can't deduct personal, living, or family ex- tiation Requirements and How To Report, later. vehicle by the organization, or penses, such as the following items. • The vehicle's fair market value on the date • The cost of meals you eat while you per- of the contribution. If the vehicle's fair mar- form services for a qualified organization, Contributions Subject to ket value was more than your cost or other unless it is necessary for you to be away Special Rules basis, you may have to reduce the fair from home overnight while performing the market value to figure the deductible services. Special rules apply if you contribute: amount, as described under Giving Prop- • Adoption expenses, including fees paid to • Clothing or household items, erty That Has Increased in Value, later. • A car, boat, or airplane, an adoption agency and the costs of keep- Form 1098-C. You must attach to your re- ing a child in your home before the adop- • Taxidermy property, turn Copy B of the Form 1098-C, Contributions tion is final. However, you may be able to • Property subject to a debt, of Motor Vehicles, Boats, and Airplanes (or claim a tax credit for these expenses. Also, • A partial interest in property, other statement containing the same informa- you may be able to exclude from your • A fractional interest in tangible personal tion as Form 1098-C) you received from the or- gross income amounts paid or reimbursed property, ganization. The Form 1098-C (or other state- by your employer for your adoption expen- • A qualified conservation contribution, ment) will show the gross proceeds from the ses. See Form 8839, Qualified Adoption • A future interest in tangible personal prop- sale of the vehicle. Expenses, and its instructions, for more in- erty, If you e-file your return, you must: formation. • Inventory from your business, or • A patent or other intellectual property. • Attach Copy B of Form 1098-C to Form 8453, U.S. Individual Income Tax Trans- Appraisal Fees These special rules are described next. mittal for an IRS e-file Return, and mail the forms to the IRS; or You can't deduct as a charitable contribution Clothing and Household Items • Include Copy B of Form 1098-C as a pdf any fees you pay to find the fair market value of attachment if your software program allows donated property. You can't take a deduction for clothing or it. household items you donate unless the clothing If you don't attach Form 1098-C (or other Contributions to or household items are in good used condition statement), you can't deduct your contribution. Donor-Advised Funds or better. You must get Form 1098-C (or other state- ment) within 30 days of the sale of the vehicle. Exception. You can take a deduction for a But if Exception 1 or 2 (described later) applies, You can't deduct a contribution to a donor-ad- contribution of an item of clothing or a house- you must get Form 1098-C (or other statement) vised fund if: hold item that isn't in good used condition or within 30 days of your donation. • The qualified organization that sponsors better if you deduct more than $500 for it, and the fund is a war veterans' organization, a include a qualified appraisal prepared by a Filing deadline approaching and still no fraternal society, or a nonprofit cemetery qualified appraiser and a completed Form Form 1098-C. If the filing deadline is ap- company; or 8283, Section B. proaching and you still don't have a Form • You don't have an acknowledgment from 1098-C, you have two choices. that sponsoring organization that it has ex- Household items. Household items include: 1. Request an automatic 6-month extension clusive legal control over the assets con- • Furniture and furnishings, tributed. of time to file your return. You can get this • Electronics, extension by filing Form 4868, Application There are also other circumstances in which • Appliances, for Automatic Extension of Time To File you can't deduct your contribution to a do- • Linens, and U.S. Individual Income Tax Return. For nor-advised fund. • Other similar items. more information, see the Instructions for Household items don't include: Form 4868. Generally, a donor-advised fund is a fund or Food; account in which a donor can, because of being • 2. File the return on time without claiming the Paintings, antiques, and other objects of a donor, advise the fund how to distribute or in- • deduction for the qualified vehicle. After art; vest amounts held in the fund. For details, see receiving the Form 1098-C, file an amen- Jewelry and gems; and Internal Revenue Code section 170(f)(18). • ded return, Form 1040-X, Amended U.S. Collections. • Individual Income Tax Return, claiming the deduction. Attach Copy B of Form 1098-C Fair market value. To determine the fair mar- Partial Interest (or other statement) to the amended re- ket value of these items, use the rules under in Property turn. Determining Fair Market Value, later. Generally, you can't deduct a contribution of Exceptions. There are two exceptions to the less than your entire interest in property. For de- rules just described for deductions of more than tails, see Partial Interest in Property under Con- $500. tributions of Property, later.

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Exception 1—Vehicle used or improved had been holding for sale to customers. See In- Right to use property. A contribution of the by organization. If the qualified organization ventory, later. right to use property is a contribution of less makes a significant intervening use of, or mate- than your entire interest in that property and rial improvement to, the vehicle before transfer- Taxidermy Property isn't deductible. ring it, you can generally deduct the vehicle's fair market value at the time of the contribution. If you donate taxidermy property to a qualified Example 1. You own a 10-story office But if the vehicle's fair market value was more organization, your deduction is limited to your building and donate rent-free use of the top than your cost or other basis, you may have to basis in the property or its fair market value, floor to a qualified organization. Because you reduce the fair market value to get the deducti- whichever is less. This applies if you prepared, still own the building, you have contributed a ble amount, as described under Giving Property stuffed, or mounted the property or paid or in- partial interest in the property and can't take a That Has Increased in Value, later. The Form curred the cost of preparing, stuffing, or mount- deduction for the contribution. 1098-C (or other statement) will show whether ing the property. this exception applies. Example 2. Mandy White owns a vacation home at the beach that she sometimes rents to Exception 2—Vehicle given or sold to Your basis for this purpose includes only the others. For a fundraising auction at her church, needy individual. If the qualified organization cost of preparing, stuffing, and mounting the she donated the right to use the vacation home will give the vehicle, or sell it for a price well be- property. Your basis doesn't include transporta- for 1 week. At the auction, the church received low fair market value, to a needy individual to tion or travel costs. It also doesn't include the di- and accepted a bid from Lauren Green equal to further the organization's charitable purpose, rect or indirect costs for hunting or killing an ani- the fair rental value of the home for 1 week. you can generally deduct the vehicle's fair mar- mal, such as equipment costs. In addition, it Mandy can't claim a deduction because of the ket value at the time of the contribution. But if doesn't include the value of your time. partial interest rule. Lauren can't claim a deduc- the vehicle's fair market value was more than tion either, because she received a benefit your cost or other basis, you may have to re- Taxidermy property means any work of art equal to the amount of her payment. See Con- duce the fair market value to get the deductible that: tributions From Which You Benefit, earlier. amount, as described under Giving Property • Is the reproduction or preservation of an That Has Increased in Value, later. The Form animal, in whole or in part; Exceptions. You can deduct a charitable con- 1098-C (or other statement) will show whether • Is prepared, stuffed, or mounted to recre- tribution of a partial interest in property only if this exception applies. ate one or more characteristics of the ani- that interest represents one of the following This exception doesn't apply if the organiza- mal; and items. tion sells the vehicle at auction. In that case, • Contains a part of the body of the dead an- • A remainder interest in your personal you can't deduct the vehicle's fair market value. imal. home or farm. A remainder interest is one that passes to a beneficiary after the end of Example. Anita donates a used car to a Property Subject to a Debt an earlier interest in the property. qualified organization. She bought it 3 years Example. You keep the right to live in ago for $9,000. A used car guide shows the fair If you contribute property subject to a debt your home during your lifetime and give market value for this type of car is $6,000. How- (such as a mortgage), you must reduce the fair your church a remainder interest that be- ever, Anita gets a Form 1098-C from the organi- market value of the property by: gins upon your death. You can deduct the zation showing the car was sold for $2,900. Nei- value of the remainder interest. ther Exception 1 nor Exception 2 applies. If 1. Any allowable deduction for interest you • An undivided part of your entire interest. Anita itemizes her deductions, she can deduct paid (or will pay) that is attributable to any This must consist of a part of every sub- $2,900 for her donation. She must attach Form period after the contribution, and stantial interest or right you own in the 1098-C and Form 8283, Noncash Charitable 2. If the property is a bond, the lesser of: property and must last as long as your in- Contributions, to her return. terest in the property lasts. But see Frac- a. Any allowable deduction for interest tional Interest in Tangible Personal Prop- Deduction $500 or less. If the qualified or- you paid (or will pay) to buy or carry erty, later. ganization sells the vehicle for $500 or less and the bond that is attributable to any pe- Example. You contribute voting stock Exceptions 1 and 2 don't apply, you can deduct riod before the contribution, or to a qualified organization but keep the the smaller of: b. The interest, including bond discount, right to vote the stock. The right to vote is a • $500, or receivable on the bond that is attribut- substantial right in the stock. You haven't • The vehicle's fair market value on the date able to any period before the contribu- contributed an undivided part of your entire of the contribution. But if the vehicle's fair tion, and that isn't includible in your in- interest and can't deduct your contribution. market value was more than your cost or come due to your accounting method. • A partial interest that would be deductible if other basis, you may have to reduce the transferred to certain types of trusts. fair market value to get the deductible This prevents you from deducting the same • A qualified conservation contribution (de- amount, as described under Giving Prop- amount as both investment interest and a chari- fined later). erty That Has Increased in Value, later. table contribution. If the vehicle's fair market value is at least For information about how to figure the $250 but not more than $500, you must have a If the recipient (or another person) assumes value of a contribution of a partial interest in written statement from the qualified organiza- the debt, you must also reduce the fair market property, see Partial Interest in Property Not in tion acknowledging your donation. The state- value of the property by the amount of the out- Trust in Pub. 561. ment must contain the information and meet the standing debt assumed. tests for an acknowledgment described under Fractional Interest in Tangible Deductions of at Least $250 but Not More Than The amount of the debt is also treated as an Personal Property $500 under Substantiation Requirements, later. amount realized on the sale or exchange of property for purposes of figuring your taxable You can't deduct a charitable contribution of a Fair market value. To determine a vehicle's gain (if any). For more information, see Bargain fractional interest in tangible personal property fair market value, use the rules described under Sales under Giving Property That Has In- unless all interests in the property are held im- Determining Fair Market Value, later. creased in Value, later. mediately before the contribution by: • You, or Donations of inventory. The vehicle donation Partial Interest in Property • You and the qualifying organization receiv- rules just described don't apply to donations of ing the contribution. inventory. For example, these rules don't apply if you are a car dealer who donates a car you Generally, you can't deduct a charitable contri- bution of less than your entire interest in prop- erty.

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If you make an additional contribution later, Qualified Organizations, earlier, that normally If you claimed the rehabilitation credit for the the fair market value of that contribution will be receives a substantial part of its support, other building for any of the 5 years before the year of determined by using the smaller of: than income from its exempt activities, from di- the contribution, your charitable deduction is re- • The fair market value of the property at the rect or indirect contributions from the general duced. For more information, see Form 3468, time of the initial contribution, or public or from governmental units. Investment Credit, and Internal Revenue Code • The fair market value of the property at the section 170(f)(14). time of the additional contribution. Qualified real property interest. This is any If you claim a deduction of more than of the following interests in real property. $10,000, your deduction won't be allowed un- Tangible personal property is defined later 1. Your entire interest in real estate other less you pay a $500 filing fee. See Form under Future Interest in Tangible Personal than a mineral interest (subsurface oil, 8283-V, Payment Voucher for Filing Fee Under Property. A fractional interest in property is an gas, or other minerals, and the right of ac- Section 170(f)(13), and its instructions. undivided portion of your entire interest in the cess to these minerals). property. More information. For information about de- 2. A remainder interest. termining the fair market value of qualified con- Example. An undivided one-quarter inter- 3. A restriction (granted in perpetuity) on the servation contributions, see Pub. 561. For infor- est in a painting that entitles an art museum to use that may be made of the real property. mation about the limits that apply to deductions possession of the painting for 3 months of each for this type of contribution, see Limits on De- year is a fractional interest in the property. Conservation purposes. Your contribution ductions, later. For more information about must be made only for one of the following con- qualified conservation contributions, see Regu- Recapture of deduction. You must recapture servation purposes. lations section 1.170A-14. your charitable contribution deduction by in- • Preserving land areas for outdoor recrea- cluding it in your income if both of the following tion by, or for the education of, the general Future Interest in Tangible statements are true. public. Personal Property 1. You contributed a fractional interest in tan- • Protecting a relatively natural habitat of gible personal property after August 17, fish, wildlife, or plants, or a similar ecosys- You can't deduct the value of a charitable con- 2006. tem. tribution of a future interest in tangible personal • Preserving open space, including farmland property until all intervening interests in and 2. You don't contribute the rest of your inter- and forest land, if it yields a significant pub- rights to the actual possession or enjoyment of ests in the property to the original recipient lic benefit. The open space must be pre- the property have either expired or been turned or, if it no longer exists, another qualified served either for the scenic enjoyment of over to someone other than yourself, a related organization on or before the earlier of: the general public or under a clearly de- person, or a related organization. But see Frac- a. The date that is 10 years after the fined federal, state, or local governmental tional Interest in Tangible Personal Property, date of the initial contribution, or conservation policy. earlier, and Tangible personal property put to • Preserving a historically important land unrelated use, later. b. The date of your death. area or a certified historic structure. Related persons include your spouse, chil- Recapture is also required if the qualified or- Building in registered historic district. If a dren, grandchildren, brothers, sisters, and pa- ganization hasn't taken substantial physical building in a registered historic district is a certi- rents. Related organizations may include a part- possession of the property and used it in a way fied historic structure, a contribution of a quali- nership or corporation in which you have an related to the organization's purpose during the fied real property interest that is an easement or interest, or an estate or trust with which you period beginning on the date of the initial contri- other restriction on the exterior of the building is have a connection. bution and ending on the earlier of: deductible only if it meets all of the following 1. The date that is 10 years after the date of conditions. Tangible personal property. This is any the initial contribution, or property, other than land or buildings, that can 1. The restriction must preserve the entire be seen or touched. It includes furniture, books, 2. The date of your death. exterior of the building (including its front, jewelry, paintings, and cars. sides, rear, and height) and must prohibit Additional tax. If you must recapture your any change to the exterior of the building deduction, you must also pay interest and an Future interest. This is any interest that is to that is inconsistent with its historical char- begin at some future time, regardless of additional tax equal to 10% of the amount re- acter. captured. whether it is designated as a future interest un- 2. You and the organization receiving the der state law. contribution must enter into a written Qualified Conservation Example. You own an antique car that you Contribution agreement certifying, under penalty of per- jury, that the organization: contribute to a museum. You give up owner- ship, but retain the right to keep the car in your A qualified conservation contribution is a contri- a. Is a qualified organization with a pur- garage with your personal collection. Because bution of a qualified real property interest to a pose of environmental protection, you keep an interest in the property, you can't qualified organization to be used only for con- land conservation, open space pres- deduct the contribution. If you turn the car over servation purposes. ervation, or historic preservation, and to the museum in a later year, giving up all rights to its use, possession, and enjoyment, Qualified organization. For purposes of a b. Has the resources to manage and en- you can take a deduction for the contribution in qualified conservation contribution, a qualified force the restriction and a commit- that later year. organization is: ment to do so. • A governmental unit; 3. You must include with your return: • A publicly supported charity; or Inventory • An organization controlled by, and oper- a. A Qualified appraisal, performed by a ated for the exclusive benefit of, a govern- Qualified appraiser; If you contribute inventory (property you sell in the course of your business), the amount you mental unit or a publicly supported charity. b. Photographs of the building's entire can deduct is the smaller of its fair market value exterior; and The organization must also have a commitment on the day you contributed it or its basis. The to protect the conservation purposes of the c. A description of all restrictions on de- basis of contributed inventory is any cost incur- donation and must have the resources to en- velopment of the building, such as red for the inventory in an earlier year that you force the restrictions. zoning laws and restrictive covenants. would otherwise include in your opening inven- A publicly supported charity is an organiza- tory for the year of the contribution. You must tion of the type described in (1) under Types of remove the amount of your charitable

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contribution deduction from your opening inven- that describe the items and statements by the tory. It isn't part of the cost of goods sold. Tax year Deductible percentage recipients of the items are also useful. Don't in- 1 100% clude any of this evidence with your tax return. If the cost of donated inventory isn't included 2 100% If the property is valuable because it is old or in your opening inventory, the inventory's basis unique, see the discussion under Paintings, An- 3 90% is zero and you can't claim a charitable contri- tiques, and Other Objects of Art in Pub. 561. bution deduction. Treat the inventory's cost as 4 80% Also see Clothing and Household Items, you would ordinarily treat it under your method 5 70% earlier. of accounting. For example, include the pur- 6 60% chase price of inventory bought and donated in Article of clothing or household item the same year in the cost of goods sold for that 7 50% over $500 not in good used condition. You year. 8 40% must file Form 8283, Section B, if you are con- tributing a single article of clothing or household 9 30% A special rule applies to certain donations of item over $500 that is not in good used condi- food inventory. See Food Inventory, later. 10 20% tion. See the Form 8283 instructions for more 11 10% information. Patents and Other Intellectual 12 10% Property Cars, boats, and airplanes. If you contribute a car, boat, or airplane to a qualified organiza- If you donate intellectual property to a qualified Reporting requirements. You must inform tion, you must determine its fair market value. organization, your deduction is limited to the ba- the organization at the time of the donation that Qualified vehicle donation. You don’t sis of the property or the fair market value of the you intend to treat the donation as a contribu- need a written appraisal for a qualified vehi- property, whichever is smaller. Intellectual prop- tion subject to the provisions just discussed. cle — such as a car, boat, or airplane — if your erty means any of the following. The organization is required to file an infor- deduction for the qualified vehicle is limited to • Patents. mation return showing the income from the the gross proceeds from its sale and you ob- • Copyrights (other than a copyright descri- property, with a copy to you. This is done on tained a contemporaneous written acknowl- bed in Internal Revenue Code sections Form 8899, Notice of Income From Donated In- edgement (defined later). If you donate a quali- 1221(a)(3) or 1231(b)(1)(C)). tellectual Property. fied vehicle with a claimed value of more than • Trademarks. $500, you can’t claim a deduction unless you • Trade names. Determining attach to Form 8283 a copy of the contempora- • Trade secrets. neous written acknowledgement you received • Know-how. Fair Market Value from the donee organization. See Qualified Ve- • Software (other than software described in hicle Donations in the Instructions for Form This section discusses general guidelines for Internal Revenue Code section 197(e)(3) 8283. (A)(i)). determining the fair market value of various • Other similar property or applications or types of donated property. Pub. 561 contains a Boats. Except for small, inexpensive boats, registrations of such property. more complete discussion. the valuation of boats should be based on an Fair market value is the price at which prop- appraisal by a marine surveyor or appraiser be- Additional deduction based on income. erty would change hands between a willing cause the physical condition is critical to the You may be able to claim additional charitable buyer and a willing seller, neither having to buy value. contribution deductions in the year of the contri- or sell, and both having reasonable knowledge Cars. Certain commercial firms and trade bution and years following, based on the in- of all the relevant facts. organizations publish used car pricing guides, come, if any, from the donated property. commonly called “blue books,” containing com- The following table shows the percentage of Used clothing. The fair market value of used plete dealer sale prices or dealer average pri- income from the property that you can deduct clothing and other personal items is usually far ces for recent model years. The guides may be for each of your tax years ending on or after the less than the price you paid for them. There are published monthly or seasonally, and for differ- date of the contribution. In the table, “tax year no fixed formulas or methods for finding the ent regions of the country. These guides also 1,” for example, means your first tax year end- value of items of clothing. provide estimates for adjusting for unusual ing on or after the date of the contribution. How- You should claim as the value the price that equipment, unusual mileage, and physical con- ever, you can take the additional deduction only buyers of used items actually pay in used cloth- dition. The prices aren't “official” and these pub- to the extent the total of the amounts figured us- ing stores, such as consignment or thrift shops. lications aren't considered an appraisal of any ing this table is more than the amount of the de- Also see Clothing and Household Items, specific donated property. But they do provide duction claimed for the original donation of the earlier. clues for making an appraisal and suggest rela- property. tive prices for comparison with current sales After the legal life of the intellectual property Example. Kristin donated a coat to a thrift and offerings in your area. ends, or after the 10th anniversary of the dona- store operated by her church. She paid $300 for These publications are sometimes available tion, whichever is earlier, no additional deduc- the coat 3 years ago. Similar coats in the thrift from public libraries, or from the loan officer at a tion is allowed. store sell for $50. The fair market value of the bank, credit union, or finance company. You coat is $50. Kristin's donation is limited to $50. can also find used car pricing information on the The additional deductions can't be taken for Internet. intellectual property donated to certain private Household items. The fair market value of To find the fair market value of a donated foundations. used household items, such as furniture, appli- car, use the price listed in a used car guide for a ances, and linens, usually is much lower than private party sale, not the dealer retail value. the price paid when new. These items may However, the fair market value may be less if have little or no market value because they are the car has engine trouble, body damage, high in a worn condition, out of style, or no longer mileage, or any type of excessive wear. The fair useful. For these reasons, formulas (such as market value of a donated car is the same as using a percentage of the cost to buy a new re- the price listed in a used car guide for a private placement item) aren't acceptable in determin- party sale only if the guide lists a sales price for ing value. a car that is the same make, model, and year, You should support your valuation with pho- sold in the same area, in the same condition, tographs, canceled checks, receipts from your with the same or similar options or accessories, purchase of the items, or other evidence. Maga- zine or newspaper articles and photographs

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and with the same or similar warranties as the short-term capital gain had you sold it at fair For more information about what is a capital donated car. market value on the date it was contributed. Ex- asset, see chapter 2 of Pub. 544. amples of ordinary income property are inven- Example. You donate a used car in poor tory, works of art created by the donor, manu- Amount of deduction—General rule. When condition to a local high school for use by stu- scripts prepared by the donor, and capital figuring your deduction for a contribution of cap- dents studying car repair. A used car guide assets (defined later, under Capital Gain Prop- ital gain property, you can generally use the fair shows the dealer retail value for this type of car erty) held 1 year or less. market value of the property. in poor condition is $1,600. However, the guide shows the price for a private party sale of the Property used in a trade or business. Exceptions. However, in certain situations, car is only $750. The fair market value of the car Property used in a trade or business is consid- you must reduce the fair market value by any is considered to be $750. ered ordinary income property to the extent of amount that would have been long-term capital any gain that would have been treated as ordi- gain if you had sold the property for its fair mar- Large quantities. If you contribute a large nary income because of depreciation had the ket value. Generally, this means reducing the number of the same item, fair market value is property been sold at its fair market value at the fair market value to the property's cost or other the price at which comparable numbers of the time of contribution. See chapter 3 of Pub. 544, basis. You must do this if: item are being sold. Sales and Other Dispositions of Assets, for the 1. The property (other than qualified appreci- kinds of property to which this rule applies. ated stock) is contributed to certain private Example. You purchase 500 bibles for nonoperating foundations, $1,000. The person who sells them to you says Amount of deduction. The amount you can the retail value of these bibles is $3,000. If you deduct for a contribution of ordinary income 2. You choose the 50% limit instead of the contribute the bibles to a qualified organization, property is its fair market value minus the 30% limit for capital gain property given to you can claim a deduction only for the price at amount that would be ordinary income or 50% limit organizations, discussed later, which similar numbers of the same bible are short-term capital gain if you sold the property 3. The contributed property is intellectual currently being sold. Your charitable contribu- for its fair market value. Generally, this rule lim- property (as defined earlier under Patents tion is $1,000, unless you can show that similar its the deduction to your basis in the property. and Other Intellectual Property), numbers of that bible were selling at a different price at the time of the contribution. Example. You donate stock you held for 5 4. The contributed property is certain taxi- months to your church. The fair market value of dermy property as explained earlier, or the stock on the day you donate it is $1,000, but Giving Property That 5. The contributed property is tangible per- you paid only $800 (your basis). Because the sonal property (defined earlier) that: Has Decreased in Value $200 of appreciation would be short-term capi- tal gain if you sold the stock, your deduction is a. Is put to an unrelated use (defined If you contribute property with a fair market limited to $800 (fair market value minus the ap- later) by the charity, or value that is less than your basis in it, your de- preciation). b. Has a claimed value of more than duction is limited to its fair market value. You Exception. Don't reduce your charitable $5,000 and is sold, traded, or other- can't claim a deduction for the difference be- contribution if you include the ordinary or capital wise disposed of by the qualified or- tween the property's basis and its fair market gain income in your gross income in the same ganization during the year in which value. year as the contribution. See Ordinary or capital you made the contribution, and the qualified organization hasn't made the Your basis in property is generally what you gain income included in gross income under required certification of exempt use paid for it. If you need more information about Capital Gain Property next, if you need more in- (such as on Form 8282, Donee Infor- basis, see Pub. 551, Basis of Assets. You may formation. mation Return, Part IV). See also Re- want to see Pub. 551 if you contribute property capture if no exempt use, later. that you: Capital Gain Property Received as a gift or inheritance; • Contributions to private nonoperating foun- Used in a trade, business, or activity con- • Property is capital gain property if you would dations. The reduced deduction applies to ducted for profit; or have recognized long-term capital gain had you contributions to all private nonoperating founda- Claimed a casualty loss deduction for. • sold it at fair market value on the date of the tions other than those qualifying for the 50% contribution. Capital gain property includes cap- limit, discussed later. Common examples of property that de- ital assets held more than 1 year. crease in value include clothing, furniture, appli- However, the reduced deduction doesn't ap- ply to contributions of qualified appreciated ances, and cars. Capital assets. Capital assets include most stock. Qualified appreciated stock is any stock items of property you own and use for personal in a corporation that is capital gain property and purposes or investment. Examples of capital Giving Property That for which market quotations are readily availa- assets are stocks, bonds, jewelry, coin or stamp Has Increased in Value ble on an established securities market on the collections, and cars or furniture used for per- day of the contribution. But stock in a corpora- sonal purposes. If you contribute property with a fair market tion doesn't count as qualified appreciated value that is more than your basis in it, you may For purposes of figuring your charitable con- stock to the extent you and your family contrib- have to reduce the fair market value by the tribution, capital assets also include certain real uted more than 10% of the value of all the out- amount of appreciation (increase in value) property and depreciable property used in your standing stock in the corporation. when you figure your deduction. trade or business and, generally, held more than 1 year. You may, however, have to treat Tangible personal property put to unrelated Your basis in property is generally what you this property as partly ordinary income property use. Tangible personal property is defined ear- paid for it. If you need more information about and partly capital gain property. See Property lier under Future Interest in Tangible Personal basis, see Pub. 551. used in a trade or business under Ordinary In- Property. come Property, earlier. Different rules apply to figuring your deduc- Unrelated use. The term “unrelated use” tion, depending on whether the property is: Real property. Real property is land and means a use unrelated to the exempt purpose • Ordinary income property, or generally anything built on, growing on, or at- or function of the qualified organization. For a • Capital gain property. tached to land. governmental unit, it means the use of the con- Depreciable property. Depreciable prop- tributed property for other than exclusively pub- Ordinary Income Property erty is property used in business or held for the lic purposes. production of income and for which a deprecia- Property is ordinary income property if you tion deduction is allowed. Example. If a painting contributed to an ed- would have recognized ordinary income or ucational institution is used by that organization

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for educational purposes by being placed in its 1. You made a contribution of apparently amount because the food wasn’t or couldn’t be library for display and study by art students, the wholesome food from your trade or busi- sold by reason of your internal standards, lack use isn't an unrelated use. But if the painting is ness. Apparently wholesome food is food of market, or similar circumstances. Also, don’t sold and the proceeds are used by the organi- intended for human consumption that reduce this amount even though you produced zation for educational purposes, the use is an meets all quality and labeling standards the food exclusively for the purpose of transfer- unrelated use. imposed by federal, state, and local laws ring the food to a qualified organization. and regulations even though the food may If you don’t account for inventories under Deduction limited. Your deduction for a not be readily marketable due to appear- section 471 and you aren’t required to capitalize contribution of tangible personal property may ance, age, freshness, grade, size, surplus, indirect costs under section 263A, you may be limited. See (5) under Exceptions, earlier. or other conditions. elect, solely for the purpose of line 2 of the worksheet, to treat the basis of any apparently Recapture if no exempt use. You must re- 2. The food is to be used only for the care of wholesome food as being equal to 25% of the capture part of your charitable contribution de- the ill, the needy, or infants. fair market value of such food. duction by including it in your income if all the 3. The use of the food is related to the organ- following statements are true. Enter on line 11 of the worksheet 25% of ization's exempt purpose or function. your net income for the year from all sole pro- 1. You donate tangible personal property 4. The organization doesn't transfer the food prietorships, S corporations, or partnerships (or with a claimed value of more than $5,000, for money, other property, or services. other entity that isn't a C corporation) from and your deduction is more than your ba- which contributions of food inventory were sis in the property. 5. You receive a written statement from the made. Figure net income before any deduction organization stating it will comply with re- 2. The organization sells, trades, or other- for a charitable contribution of food inventory. quirements (2), (3), and (4). wise disposes of the property after the If you made more than one contribution of year it was contributed but within 3 years 6. The organization isn't a private nonoperat- food inventory, complete a separate worksheet of the contribution. ing foundation. for each contribution. Complete lines 11 and 12 on only one worksheet. On that worksheet, 3. The organization doesn't provide a written 7. The food satisfies any applicable require- complete line 11. Then compare line 11 and the statement (such as on Form 8282, Part ments of the Federal Food, Drug, and total of the line 10 amounts on all worksheets IV), signed by an officer of the organiza- Cosmetic Act and regulations on the date and enter the smaller of those amounts on tion under penalty of perjury, that either: of transfer and for the previous 180 days. line 12. a. Certifies its use of the property was If line 11 is smaller than line 10, you can substantial and related to the organi- If all the conditions just described are met, carry over the excess as a qualifying food in- zation's purpose, or use the following worksheet to figure your de- ventory contribution to the following year. You duction. may be able to include the excess in your chari- b. Certifies its intended use of the prop- table contribution deduction for the food in each erty became impossible. of the next 5 years in order of time until it is Worksheet 1. used up, but not beyond that time. If all the preceding statements are true, in- Donations of Food Inventory clude in your income: See separate Worksheet instructions. (Keep for your records) More information. See Inventory, earlier, for 1. The deduction you claimed for the prop- information about determining the basis of do- erty, minus 1. Enter fair market value of the nated inventory and the effect on cost of goods donated food ...... 2. Your basis in the property when you made 2. Enter basis of the donated sold. For additional details, see section 170(e) the contribution. food ...... (3) of the Internal Revenue Code. 3. Subtract line 2 from line 1. Include this amount in your income for the year If the result is zero or less, stop here. Bargain Sales the qualified organization disposes of the prop- Don't complete the rest of this worksheet. Your charitable erty. Report the recaptured amount on Sched- A bargain sale of property is a sale or exchange ule 1 (Form 1040), line 8. contribution deduction for food is the amount on line 1 ...... for less than the property's fair market value. A bargain sale to a qualified organization is partly Ordinary or capital gain income included in 4. Enter one-half of line 3 ...... a charitable contribution and partly a sale or ex- gross income. You don't reduce your charita- 5. Subtract line 4 from line 1 ...... change. ble contribution if you include the ordinary or 6. Multiply line 2 by 2.0 ...... capital gain income in your gross income in the Part that is a sale or exchange. The part of same year as the contribution. This may hap- 7. Subtract line 6 from line 5. If the result the bargain sale that is a sale or exchange may pen when you transfer installment or discount is less than zero, enter -0- ...... 8. Add lines 4 and 7 ...... result in a taxable gain. For more information on obligations or when you assign income to a figuring the amount of any taxable gain, see qualified organization. If you contribute an obli- 9. Compare line 3 and line 8. Enter the Bargain sales to charity in chapter 1 of Pub. gation received in a sale of property that is re- smaller amount ...... 10. Subtract line 9 from line 1 ...... 544. ported under the installment method, see Pub. 537, Installment Sales. 11. Enter 25% of your total net income for the year from Part that is a charitable contribution. Figure all trades or businesses the amount of your charitable contribution in Example. You donate an installment note from which food three steps. to a qualified organization. The note has a fair inventory was donated ...... market value of $10,000 and a basis to you of Step 1. Subtract the amount you received 12. Compare line 10 and line 11. $7,000. As a result of the donation, you have a Enter the smaller amount. for the property from the property's fair market short-term capital gain of $3,000 ($10,000 − This is your charitable value at the time of sale. This gives you the fair $7,000), which you include in your income for contribution deduction market value of the contributed part. the year. Your charitable contribution is for the food ...... $10,000. Step 2. Find the adjusted basis of the con- tributed part. It equals: Food Inventory Worksheet instructions. When determining Fair market value the fair market value to enter on line 1 of the Adjusted basis of of contributed part worksheet, take into account the price at which ϫ Special rules apply to certain donations of food entire property Fair market value the same or substantially the same food items inventory to a qualified organization. These of entire property rules apply if all the following conditions are (as to both type and quality) were sold by you at met. the time of the contribution. Don’t reduce this

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Step 3. Determine whether the amount of Credit card. Contributions charged on your type of property you give and the type of organi- your charitable contribution is the fair market bank credit card are deductible in the year you zation you give it to. A higher limit applies to value of the contributed part (which you found in make the charge. certain qualified conservation contributions and Step 1) or the adjusted basis of the contributed qualified cash contributions for 2020. These part (which you found in Step 2). Generally, if Pay-by-phone account. Contributions limits are described in detail in this section. the property sold was capital gain property, made through a pay-by-phone account are con- your charitable contribution is the fair market sidered delivered on the date the financial insti- Your AGI is the amount on Form 1040 or value of the contributed part. If it was ordinary tution pays the amount. This date should be 1040-SR, line 11. income property, your charitable contribution is shown on the statement the financial institution the adjusted basis of the contributed part. See sends you. If your contributions are more than any of Ordinary Income Property and Capital Gain Stock certificate. A properly endorsed the limits that apply, see Carryovers under How Property, both earlier, for more information. stock certificate is considered delivered on the To Figure Your Deduction When Limits Apply, date of mailing or other delivery to the charity or later. Example. You sell ordinary income prop- to the charity's agent. However, if you give a erty with a fair market value of $10,000 to a stock certificate to your agent or to the issuing Out-of-pocket expenses. Amounts you church for $2,000. Your basis is $4,000 and corporation for transfer to the name of the char- spend performing services for a charitable or- your adjusted gross income is $20,000. You ity, your contribution isn't delivered until the ganization may be deductible as a contribution make no other contributions during the year. date the stock is transferred on the books of the to a qualified organization. If so, your deduction The fair market value of the contributed part of corporation. is subject to the limit applicable to donations to the property is $8,000 ($10,000 − $2,000). The that organization. For example, the 30% limit adjusted basis of the contributed part is $3,200 Promissory note. If you issue and deliver applies to amounts you spend on behalf of a ($4,000 × ($8,000 ÷ $10,000)). Because the a promissory note to a charity as a contribution, private nonoperating foundation. property is ordinary income property, your char- it isn't a contribution until you make the note itable deduction is limited to the adjusted basis payments. Types of Qualified of the contributed part. You can deduct $3,200. Option. If you grant a charity an option to Organizations buy real property at a bargain price, it isn't a Penalty contribution until the charity exercises the op- For the purpose of applying the deduction limits tion. to your charitable contributions, qualified organ- You may be liable for a penalty if you overstate izations can be divided into two categories. the value or adjusted basis of contributed prop- Borrowed funds. If you contribute bor- erty. rowed funds, you can deduct the contribution in the year you deliver the funds to the charity, re- First category of qualified organizations (50% limit organizations). The first category 20% penalty. The penalty is 20% of the gardless of when you repay the loan. includes only the following types of qualified or- amount by which you underpaid your tax be- Conditional gift. If your contribution de- ganizations. (These organizations are also cause of the overstatement, if: pends on a future act or event to become effec- sometimes referred to as “50% limit organiza- 1. The value or adjusted basis claimed on tive, you can't take a deduction unless there is tions.”) your return is 150% or more of the correct only a negligible chance the act or event won't 1. Churches and conventions or associations amount, and take place. of churches. If your contribution would be undone by a 2. You underpaid your tax by more than later act or event, you can't take a deduction un- 2. Educational organizations with a regular $5,000 because of the overstatement. less there is only a negligible chance the act or faculty and curriculum that normally have event will take place. a regularly enrolled student body attend- 40% penalty. The penalty is 40%, rather than ing classes on site. 20%, if: Example 1. You contribute cash to a local 3. Hospitals and certain medical research or- 1. The value or adjusted basis claimed on school board, which is a political subdivision of ganizations associated with these hospi- your return is 200% or more of the correct a state, to help build a school gym. The school tals. amount, and board will refund the money to you if it doesn't collect enough to build the gym. You can't de- 4. Organizations that are operated only to re- 2. You underpaid your tax by more than duct your contribution until there is no chance ceive, hold, invest, and administer prop- $5,000 because of the overstatement. (or only a negligible chance) of a refund. erty and to make expenditures to or for the benefit of state and municipal colleges Example 2. You donate land to a city for as and universities and that normally receive When To Deduct long as the city uses it for a public park. The city substantial support from the United States plans to use the land for a park, and there is no or any state or their political subdivisions, You can deduct your contributions only in the chance (or only a negligible chance) of the land or from the general public. year you actually make them in cash or other being used for any different purpose. You can 5. The United States or any state, the District property (or in a later carryover year, as ex- deduct your charitable contribution in the year of Columbia, a U.S. possession (including plained under How To Figure Your Deduction you make the contribution. Puerto Rico), a political subdivision of a When Limits Apply, later). This applies whether state or U.S. possession, or an Indian you use the cash or an accrual method of ac- tribal government or any of its subdivisions counting. Limits on Deductions that perform substantial government func- Time of making contribution. Usually, you If your total contributions for the year tions. make a contribution at the time of its uncondi- TIP are 20% or less of your adjusted gross 6. Publicly supported charities, defined ear- tional delivery. income, you don't need to read the rest lier under Qualified Conservation Contri- of this section. The remaining limits discussed bution. Checks. A check you mail to a charity is in this section don't apply to you. considered delivered on the date you mail it. 7. Organizations that may not qualify as “publicly supported” but that meet other The amount you can deduct for charitable Text message. Contributions made by text tests showing they respond to the needs contributions is generally limited to no more message are deductible in the year you send of the general public, not a limited number than 60% of your adjusted gross income (AGI). the text message if the contribution is charged of donors or other persons. They must Your deduction may be further limited to 50%, to your telephone or wireless account. normally receive more than one-third of 30%, or 20% of your AGI, depending on the their support either from organizations

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described in (1) through (6), or from per- conservation contribution (QCC) is limited to meaning of section 170(f)(8)) from the or- sons other than “disqualified persons.” 100% of your AGI minus your deduction for all ganization that such contribution was used other charitable contributions. However, if the for relief efforts. 8. Most organizations operated or controlled donated property is used in agriculture or live- • The taxpayer elected to have qualified dis- by, and operated for the benefit of, those stock production (or is available for such pro- aster area tax relief apply to such contribu- organizations described in (1) through (7). duction), the contribution must be subject to a tion. 9. Private operating foundations. restriction that the property remain available for such production. If not, the limit is 50%. For Exception. Qualified contributions don’t in- 10. Private nonoperating foundations that more information about applying the 50% limit clude a contribution to a segregated fund or ac- make qualifying distributions of 100% of to a QCC, see Qualified conservation contribu- count for which you (or any person you appoint contributions within 21/2 months following tions, later, under Limits based on 50% of ad- or designate) have or expect to have advisory the year they receive the contribution. A justed gross income. privileges with respect to distributions or invest- deduction for charitable contributions to ments based on your contribution. any of these private nonoperating founda- Qualified farmer or rancher. You are a tions must be supported by evidence from qualified farmer or rancher if your gross income Carryover rule. You can carry over any the foundation confirming it made the from the trade or business of farming is more qualified contributions you aren’t able to deduct qualifying distributions timely. Attach a than 50% of your gross income for the year. in 2020 because of this limit. copy of this supporting data to your tax re- turn. Qualified cash contributions for 2020. If you Limit based on 60% of adjusted make a qualified cash contribution for tax year 11. A private foundation whose contributions gross income (AGI) 2020, your deduction for the cash contribution are pooled into a common fund, if the is limited to 100% of your adjusted gross in- If you make cash contributions during the year foundation would be described in (8) but come (AGI) minus your deduction for all other to an organization described earlier under First for the right of substantial contributors to contributions. A qualified cash contribution must category of qualified organizations (50% limit name the public charities that receive con- meet the following criteria. organizations), and you elect not to treat it as tributions from the fund. The foundation It is a charitable contribution paid in cash Qualified cash contributions for 2020, your de- must distribute the common fund's income • or by check after December 31, 2019. duction for the cash contributions is 60% of within 21/2 months following the tax year in It is paid to an organization described ear- your AGI. which it was realized and must distribute • lier under First category of qualified organi- the corpus not later than 1 year after the zations (50% limit organizations) (other This 60% limit doesn’t apply to noncash donor's death (or after the death of the do- than certain private foundations described charitable contributions. See Noncash contribu- nor's surviving spouse if the spouse can in section 509(a)(3)). tions to 50% limit organizations, later, if you name the recipients of the corpus). • The taxpayer elected to have this limitation contribute something other than cash to a 50% You can ask any organization whether it is a apply to such contribution. limit organization. 50% limit organization, and most will be able to Exception. Qualified contributions don’t in- tell you. Also see How to check whether an or- Example 1. You gave your church a $200 clude a contribution to a segregated fund or ac- ganization can receive deductible charitable cash contribution that you elected not to treat count for which you (or any person you appoint contributions, earlier. as Qualified cash contributions for 2020.. The or designate) have or expect to have advisory limit based on 60% of AGI will apply to the cash Second category of qualified organizations. privileges with respect to distributions or invest- contribution to the church because it is an or- The second category includes any type of quali- ments based on your contribution. ganization described earlier under First cate- fied organization that isn’t in the first category. Carryover rule. You can carry over any gory of qualified organizations (50% limit organ- qualified contributions you aren’t able to deduct izations) and because the contribution was Limits in 2020 because of this limit. cash. Qualified contributions for relief efforts for Example 2. You donated clothing to your The limit that applies to a contribution depends 2018 and 2019 disasters. If you make a quali- church with a fair market value of $200. The on the type of property you give and which cate- fied contribution for relief efforts in a qualified limit based on 60% of AGI doesn’t apply be- gory of qualified organization you give it to. The disaster area, your deduction for the qualified cause the contribution is not cash. Instead, a amount of a contribution you can deduct is gen- contribution is limited to 100% of your adjusted limit based on 50% of AGI discussed later will erally limited to a percentage of your adjusted gross income minus your deduction for all other apply to the contribution to the church because gross income (AGI), but may be further reduced contributions. For purposes of this section, a it is an organization described earlier under if you make contributions that are subject to qualified disaster is a major disaster that was First category of qualified organizations (50% more than one of the limits discussed in this declared before February 19, 2020, by the limit organizations). section. President under section 401 of the Stafford Act “For the use of” contribution exception. Your total deduction of charitable contribu- and that occurred in 2018 and before Decem- A 30% limit applies to cash contributions that tions can’t exceed your AGI. If your contribu- ber 21, 2019. However, a qualified disaster are “for the use of” the qualified organizations tions are subject to more than one of the limits, doesn't include California wildfires in January instead of “to” the qualified organization. A con- you include all or part of each contribution in a 2018 (which received special relief). tribution is “for the use of” a qualified organiza- certain order, carrying over any excess to a A qualified contribution must meet the fol- tion when it is held in a legally enforceable trust subsequent year (if allowed). See How To Fig- lowing criteria. for the qualified organization or in a similar legal ure Your Deduction When Limits Apply and • It is a charitable contribution paid in cash arrangement. See Contributions to the second Carryovers, later, for more information about or- or by check before February 19, 2020. category of qualified organiztions or “for the use dering and carryovers. • It is paid to an organization described ear- of” any qualified organization, later, under Lim- lier under First category of qualified organi- its based on 30% of adjusted gross income, for zations (50% limit organizations)(other more information. Limits based on 100% of adjusted than certain private foundations described gross income in section 509(a)(3)). Limits based on 50% of adjusted • It is payable for relief efforts in a qualified There are three 100% limits that may apply to disaster area described above. gross income (AGI) your contributions. The taxpayer obtains contemporaneous • There are two 50% limits that may apply to your written acknowledgement (within the Qualified conservation contributions of contributions. farmers and ranchers. If you are a qualified farmer or rancher, your deduction for a qualified

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Noncash contributions to 50% limit organi- subject to the other 30% limit. The $10,000 limit that would otherwise apply. See Capital zations. If you make noncash contributions to cash contribution is fully deductible because the gain property election, later, under How To Fig- organizations described earlier under First cate- contribution is not more than the smaller of (i) ure Your Deduction When Limits Apply, for gory of qualified organizations (50% limit organ- 30% of your AGI ($15,000) and (ii) 50% of your more information about making this election izations), your deduction for the noncash contri- AGI minus all contributions to a 50% limit organ- and how to adjust the amount of your contribu- butions is limited to 50% of your AGI minus your ization ($25,000 - $15,000 = $10,000). The tion. cash contributions subject to the 60% limit. $15,000 is also fully deductible because the contribution is not more than 30% of your AGI Capital gain property exception. A 30% Limit based on 20% of adjusted minus all contributions to a 50% limit organiza- gross income (AGI) limit applies to noncash contributions of capital tion subject to the 60% or 50% limit (other than gain property if you figure your deduction using qualified conservation contributions) ($25,000 - fair market value without reduction for apprecia- If you make noncash contributions of capital $10,000 = $15,000). Neither amount is reduced gain property during the year (1) to an organiza- tion. See Certain capital gain property contribu- by the other, so the total deductible contribution tions to 50% limit organizations, later, under tion described earlier under Second category of is $25,000 (which is also not more than $50,000 qualified organizations, or (2) “for the use of” Limits based on 30% of adjusted gross income, of your AGI). for more information. any qualified organization, your deduction for those contributions is limited to 20% of your AGI “For the use of” contribution exception. Contributions to the second category of or, if less, the smallest of the following. A 20% or 30% limit applies to noncash contribu- qualified organizations or “for the use of” 1. 30% of your AGI minus all your contribu- tions that are “for the use of” the qualified or- any qualified organization. If you make cash tions that are subject to a limit based on ganization instead of “to” the qualified organiza- contributions or noncash contributions (other 30% of AGI. tion. A contribution is “for the use of” a qualified than capital gain property) during the year (1) to organization when it is held in a legally enforce- an organization described earlier under Second 2. 30% of your AGI minus all your capital able trust for the qualified organization or in a category of qualified organizations, or (2) “for gain contributions that are subject to the similar legal arrangement. If the noncash contri- the use of” any qualified organization, your de- limit based on 30% of AGI. bution is capital gain property, see Limit based duction for those contributions is limited to 30% 3. 50% of your AGI minus all contributions on 20% of adjusted gross income, later, for of your AGI, or if less, 50% of your AGI minus all subject to the limits based on 60%, 50%, more information; otherwise, see Contributions your contributions to 50% limit organizations and 30% of AGI (other than qualified con- to the second category of qualified organiza- (other than contributions subject to a 100% limit servation contributions). tions or “for the use of” any qualified organiza- or qualified conservation contributions). For this tion, later, under Limits based on 30% of adjus- purpose, contributions to 50% limit organiza- ted gross income, for more information. tions include all capital gain property contribu- A contribution is “for the use of” a qualified tions to a 50% limit organization (other than organization when it is held in a legally enforce- Qualified conservation contributions. Your qualified conservation contributions), even able trust for the qualified organization or in a deduction for qualified conservation contribu- those that are subject to the 30% limit, dis- similar legal arrangement. tions (QCCs) is limited to 50% of your AGI mi- cussed later. nus your deduction for all other charitable con- A contribution is “for the use of” a qualified How To Figure tributions. organization when it is held in a legally enforce- able trust for the qualified organization or in a Your Deduction If you are a farmer or rancher, go to similar legal arrangement. When Limits Apply TIP Qualified conservation contributions of If you make a contribution of capital gain farmers or ranchers, earlier, under Lim- property to an organization other than a 50% If your contributions are subject to more than its based on 100% of adjusted gross income, to limit organization or “for the use of” any qualified see if that limit applies to your QCC instead. one of the limits discussed earlier, use the fol- organization, see Limit based on 20% of adjus- lowing steps to figure the amount of your contri- ted gross income, later. butions that you can deduct. Limits based on 30% of adjusted Student living with you. Deductible 1. Cash contributions that you elected not to gross income (AGI) amounts you spend on behalf of a student living treat as Qualified cash contributions for with you are subject to this 30% limit. These 2020, subject to the limit based on 60% of These are two 30% limits that may apply to your amounts are considered a contribution for the adjusted gross income (AGI). Deduct the contributions. The 30% limit for capital gain use of a qualified organization. See Expenses contributions that don't exceed 60% of property contributions to a 50% limit organiza- Paid for Student Living With You, earlier, for your AGI. tion is separate from the 30% limit that applies more information. to your other contributions. Both are separately 2. Noncash contributions (other than quali- reduced by contributions made to a 50% limit Certain capital gain property contributions fied conservation contributions) subject to organization, but the amount allowed after ap- to 50% limit organizations. Your noncash the limit based on 50% of AGI. Deduct the plying one of the 30% limits doesn't reduce the contributions of capital gain property to 50% contributions that don’t exceed 50% of amount allowed after applying the other 30% limit organizations is limited to 30% of your ad- your AGI minus your cash contributions to limit. However, as a result of applying the sepa- justed gross income minus all your contribu- a 50% limit organization (other than contri- rate limits, the total contributions subject to a tions to 50% limit organizations that are subject butions subject to a limit based on 100% 30% limit will never be more than 50% of your to the 60% and 50% limits (other than qualified of AGI). AGI. conservation contributions). The limit that ap- 3. Cash and noncash contributions (other plies to capital gain property contributions to than capital gain property) subject to the Example. Your AGI is $50,000. During the 50% limit organizations doesn’t apply to quali- limit based on 30% of AGI. Deduct the year, you gave capital gain property with a fair fied conservation contributions. If you are mak- contributions that don’t exceed the smaller market value of $15,000 to an organization de- ing a qualified conservation contribution (QCC), of: scribed earlier under First category of qualified see Qualified conservation contributions and organizations (50% limit organizations). You Qualified conservation contributions of farmers a. 30% of your AGI, or don’t choose to reduce the property’s fair mar- and ranchers, earlier, for the limits to apply to a b. 50% of your AGI minus your contribu- ket value by its appreciation in value. You also QCC. tions to a 50% limit organization (other gave $10,000 cash to a qualified organization than contributions subject to a limit that is described earlier under Second category Election to apply the 50% limit. You may based on 100% of AGI or qualified of qualified organizations (meaning it isn’t a choose the 50% limit for contributions of capital conservation contributions), including 50% limit organization). The $15,000 contribu- gain property to organizations described earlier capital gain property subject to the tion of capital gain property is subject to one under First category of qualified organizations limit based on 30% of AGI. 30% limit and the $10,000 cash contribution is (50% limit organizations) instead of the 30%

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4. Contributions of capital gain property sub- Example. Your AGI is $50,000. In March, You must make the choice on your original ject to the limit based on 30% of AGI. De- you gave your church $2,000 cash that you return or on an amended return filed by the due duct the contributions that don’t exceed elected not to treat as Qualified cash contribu- date for filing the original return. the smaller of: tions for 2020, and land with a fair market value of $28,000 and a basis of $22,000. You held the Example. In the previous example, if you a. 30% of your AGI, or land for investment purposes for more than 1 choose to have the 50% limit apply to the land b. 50% of your AGI minus your contribu- year. You don't make the capital gain property (the 30% capital gain property) given to your tions subject to the limits based on election for this year. See Capital gain property church, you must reduce the fair market value 60% or 50% of AGI (other than quali- election, later. Therefore, the amount of your of the property by the appreciation in value. fied conservation contributions). charitable contribution for the land would be its Therefore, the amount of your charitable contri- 5. Contributions of capital gain property sub- fair market value of $28,000. You also gave bution for the land would be its basis to you of ject to the limit based on 20% of AGI. De- $5,000 cash to a private nonoperating founda- $22,000. You add this amount to the $2,000 duct the contributions that don’t exceed tion to which the 30% limit applies. cash contributed to the church. You can now the smaller of: The $2,000 cash donated to the church is deduct $1,000 of the amount donated to the pri- considered first and is fully deductible. Your vate nonoperating foundation because the total a. 20% of your AGI, contribution to the private nonoperating founda- of your contributions of cash ($2,000) and capi- b. 30% of your AGI minus your contribu- tion is considered next. Because the total of tal gain property ($22,000) to 50% limit organi- tions of capital gain property subject your cash contribution of $2,000 and your capi- zations is $1,000 less than the limit based on to the limit based on 30% of AGI, tal gain property of $28,000 to a 50% limit or- 50% of AGI. Your total deduction for the year is ganization ($30,000) is more than $25,000 $25,000 ($2,000 cash to your church, $22,000 c. 30% of your AGI minus your other (50% of $50,000), your contribution to the pri- for property donated to your church, and $1,000 contributions subject to the limit vate nonoperating foundation isn't deductible cash to the private nonoperating foundation). based on 30% of AGI, or for the year. It can be carried over to later years. You can carry over to later years the part of d. 50% of your AGI minus your contribu- See Carryovers, later. The contribution of land your contribution to the private nonoperating tions subject to the limits based on is considered next. Your deduction for the land foundation that you couldn't deduct ($4,000). 60%, 50%, and 30% of AGI (other is limited to $15,000 (30% × $50,000). The un- than qualified conservation contribu- used part of the contribution ($13,000) can be Instructions for Worksheet 2 tions). carried over. For this year, your deduction is limited to $17,000 ($2,000 + $15,000). You can use Worksheet 2 if you made charita- 6. Qualified conservation contributions sub- ble contributions during the year, and one or ject to the limit based on 50% of AGI. De- Capital gain property election. You may more of the limits described in this publication duct the contributions that don’t exceed choose the 50% limit for contributions of capital under Limits on Deductions apply to you. You 50% of your AGI minus any deductible gain property to qualified organizations descri- can't use this worksheet if you have a carryover contributions figured in (1) through (5). bed earlier under First category of qualified or- of a charitable contribution from an earlier year. 7. Qualified conservation contributions sub- ganizations (50% limit organizations) instead of If you have a carryover from an earlier year, see ject to the limit based on 100% of AGI. De- the 30% limit that would otherwise apply. If you Carryovers, later. duct the contributions that don't exceed make this choice, you must reduce the fair mar- 100% of your AGI minus any deductible ket value of the property contributed by the ap- The following list gives instructions for com- contributions figured in (1) through (6). preciation in value that would have been pleting the worksheet. long-term capital gain if the property had been • The terms used in the worksheet are ex- 8. Qualified cash contributions for 2020 plus sold. qualified contributions for relief efforts in a plained earlier in this publication. This choice applies to all capital gain prop- qualified disaster area subject to the limit • If the result on any line is less than zero, erty contributed to 50% limit organizations dur- based on 100% of AGI. Deduct the contri- enter zero. ing a tax year. It also applies to carryovers of butions that don't exceed 100% of your • For contributions of property, enter the this kind of contribution from an earlier tax year. AGI minus all your other deductible contri- property's fair market value unless you For details, see Carryover of capital gain prop- butions. elected (or were required) to reduce the erty, later. fair market value as explained under Giv- These steps are incorporated into Work- ing Property That Has Increased in Value. sheet 2. In that case, enter the reduced amount.

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Worksheet 2. Applying the Deduction Limits

Caution: Don’t use this worksheet to figure the contributions you can deduct this year if you have a carryover of a charitable contribution from an earlier year.

Step 1. Enter any qualified conservation contributions (QCCs) made during the year. 1. If you are a qualified farmer or rancher, enter any QCCs subject to the limit based on 100% of adjusted gross income (AGI) ...... 1 2. Enter any QCCs not entered on line 1 ...... 2 Step 2. Enter your other charitable contributions made during the year. 3. Enter cash contributions that you elect to treat as qualified contributions plus cash contributions payable for relief efforts in qualified disaster areas that you elected to treat as qualified contributions. Don’t include this amount on line 4 below ...... 3 4. Enter your contributions of capital gain property "for the use of" any qualified organization ...... 4 5. Enter your other contributions "for the use of" any qualified organization. Don't include any contributions you entered on a previous line ...... 5 6. Enter your contributions of capital gain property to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line ...... 6 7. Enter your other contributions to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line ...... 7 8. Enter your contributions of capital gain property to 50% limit organizations deducted at fair market value. Don't include any contributions you entered on a previous line ...... 8 9. Enter your noncash contributions to 50% limit organizations other than capital gain property you deducted at fair market value. Be sure to include contributions of capital gain property to 50% limit organizations if you reduced the property's fair market value. Don't include any contributions you entered on a previous line ...... 9 10. Enter your cash contributions to 50% limit organizations that you elected not to treat as qualified contributions. Don't include any contributions you entered on a previous line ...... 10 Step 3. Figure your deduction for the year (if any result is zero or less, enter -0-) 11. Enter your adjusted gross income (AGI) ...... 11 Cash contributions subject to the limit based on 60% of AGI (If line 10 is zero, enter -0- on lines 12 through 14.) 12. Multiply line 11 by 0.6 ...... 12 13. Deductible amount. Enter the smaller of line 10 or line 12 ...... 13 14. Carryover. Subtract line 13 from line 10 ...... 14 Noncash contributions subject to the limit based on 50% of AGI (If line 9 is zero, enter -0- on lines 15 through 18.) 15. Multiply line 11 by 0.5 ...... 15 16. Subtract line 13 from line 15 ...... 16 17. Deductible amount. Enter the smaller of line 9 or line 16 ...... 17 18. Carryover. Subtract line 17 from line 9 ...... 18 Contributions (other than capital gain property) subject to limit based on 30% of AGI (If lines 5 and 7 are both zero, enter -0- on lines 19 through 25.) 19. Multiply line 11 by 0.5 ...... 19 20. Add lines 8, 9, and 10 ...... 20 21. Subtract line 20 from line 19 ...... 21 22. Multiply line 11 by 0.3 ...... 22 23. Add lines 5 and 7 ...... 23 24. Deductible amount. Enter the smallest of line 21, 22, or 23 ...... 24 25. Carryover. Subtract line 24 from line 23 ...... 25 Contributions of capital gain property subject to limit based on 30% of AGI (If line 8 is zero, enter -0- on lines 26 through 31.) 26. Multiply line 11 by 0.5 ...... 26 27. Add lines 9 and 10 ...... 27 28. Subtract line 27 from line 26 ...... 28 29. Multiply line 11 by 0.3 ...... 29 30. Deductible amount. Enter the smallest of line 8, 28, or 29 ...... 30 31. Carryover. Subtract line 30 from line 8 ...... 31 Contributions subject to the limit based on 20% of AGI (If lines 4 and 6 are both zero, enter -0- on lines 32 through 41.) 32. Multiply line 11 by 0.5 ...... 32 33. Add lines 13, 17, 24, and 30 ...... 33 34. Subtract line 33 from line 32 ...... 34 35. Multiply line 11 by 0.3 ...... 35 36. Subtract line 24 from line 35 ...... 36 37. Subtract line 30 from line 35 ...... 37 38. Multiply line 11 by 0.2 ...... 38 39. Add lines 4 and 6 ...... 39 40. Deductible amount. Enter the smallest of line 34, 36, 37, 38, or 39 ...... 40 41. Carryover. Subtract line 40 from line 39 ...... 41 QCCs subject to limit based on 50% of AGI (If line 2 is zero, enter -0- on lines 42 through 46.) 42. Multiply line 11 by 0.5 ...... 42 43. Add lines 13, 17, 24, 30, and 40 ...... 43 44. Subtract line 43 from line 42 ...... 44 45. Deductible amount. Enter the smaller of line 2 or line 44 ...... 45 46. Carryover. Subtract line 45 from line 2 ...... 46 Note: Worksheet 2 continues on the next page.

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Worksheet 2—continued

QCCs subject to limit based on 100% of AGI (If line 1 is zero, enter -0- on lines 47 through 51.)

47. Enter the amount from line 11 ...... 47

48. Add lines 13, 17, 24, 30, 40, and 45 ...... 48

49. Subtract line 48 from line 47 ...... 49

50. Deductible amount. Enter the smaller of line 1 or line 49 ...... 50

51. Carryover. Subtract line 50 from line 1 ...... 51

Qualified cash contributions for 2020 and qualified contributions for certain disaster relief efforts (If line 3 is zero, enter -0- on lines 52 through 56.)

52. Enter the amount from line 11 ...... 52

53. Add lines 13, 17, 24, 30, 40, 45, and 50 ...... 53

54. Subtract line 53 from line 52 ...... 54

55. Deductible amount. Enter the smaller of line 3 or line 54 ...... 55

56. Carryover. Subtract line 55 from line 3 ...... 56

Deduction for the year 57. Add lines 13, 17, 24, 30, 40, 45, 50, and 55. Enter the total here and include the deductible amounts on Schedule A (Form 1040), line 11 or line 12, whichever is appropriate. Also, enter the amount from line 55 on the dotted line next to the line 11 entry space ...... 57 Note. Any amounts in the carryover column are not deductible this year but can be carried over to next year. See Carryovers, later, for more information about how you will use them next year.

Carryovers cash contribution in full because your total cash your 30% limit contributions for this year to next contributions of $10,500 ($9,500 + $1,000) is year. You can carry over any contributions you can't less than $12,000 (60% of $20,000). deduct in the current year because they exceed Carryover of capital gain property. If you the limits based on your adjusted gross income Example 2. This year, your AGI is $24,000. carry over contributions of capital gain property (AGI). Except for qualified conservation contri- You make cash contributions of $6,000 that you subject to the special 30% limit and you choose butions, you may be able to deduct the excess elected not to treat as qualified cash contribu- in the next year to use the 50% limit and take in each of the next 5 years until it is used up, but tions for 2020, so the 60% limit applies and appreciation into account, you must refigure the not beyond that time. $3,000 to which the 30% limit applies. You have carryover. Reduce the fair market value of the a contribution carryover from last year of $5,000 property by the appreciation and reduce that re- A carryover of a qualified conservation con- for capital gain property contributed to a 50% sult by the amount actually deducted in the pre- tribution can be carried forward for 15 years. limit organization and subject to the special vious year. 30% limit for contributions of capital gain prop- erty. Example. Last year, your AGI was $50,000 Contributions you carry over are subject to Your cash contribution of $6,000 is fully de- and you contributed capital gain property val- the same percentage limits in the year to which ductible because it is less than $14,400 (which ued at $27,000 to a 50% limit organization and they are carried. For example, contributions is 60% of your AGI). didn't choose to use the 50% limit. Your basis in subject to the 20% limit in the year in which they The deduction for your 30% limit contribu- the property was $20,000. Your deduction was are made are 20% limit contributions in the year tions of $3,000 is limited to $1,000. This is the limited to $15,000 (30% of $50,000), and you to which they are carried. But see Carryover of lesser of: carried over $12,000. This year, your AGI is capital gain property, later. $60,000 and you contribute capital gain prop- 1. $7,200 (30% of $24,000), or erty valued at $25,000 to a 50% limit organiza- For each category of contributions, you de- 2. $1,000 ($12,000 minus $11,000). tion. Your basis in the property is $24,000 and duct carryover contributions only after deduct- you choose to use the 50% limit. You must re- ing all allowable contributions in that category (The $12,000 amount is 50% of $24,000, your figure your carryover as if you had taken appre- for the current year. If you have carryovers from AGI. The $11,000 amount is the sum of your ciation into account last year as well as this 2 or more prior years, use the carryover from current and carryover contributions to 50% limit year. Because the amount of your contribution the earlier year first. organizations, $6,000 + $5,000.) last year would have been $20,000 (the proper- The deduction for your $5,000 carryover is ty's basis) instead of the $15,000 you actually Note. A carryover of a contribution to a 50% subject to the special 30% limit for contributions deducted, your refigured carryover is $5,000 limit organization must be used before contribu- of capital gain property. This means it is limited ($20,000 − $15,000). Your total deduction this tions in the current year to organizations other to the smaller of: year is $29,000 (your $24,000 current contribu- than 50% limit organizations. See Example 2. 1. $7,200 (your 30% limit), or tion plus your $5,000 carryover).

Example 1. Last year, you made cash con- 2. $5,000 ($12,000, your 50% limit, minus Additional rules for carryovers. Special tributions of $11,000 to 50% limit organizations. your allowable cash contributions to which rules exist for computing carryovers if you: Because of the limit based on 60% of AGI, you the 60% limit applies ($6,000) and minus • Are married in some years but not others, deducted only $10,000 and carried over $1,000 your allowable contribution to which the • Have different spouses in different years, to this year. This year, your AGI is $20,000 and 30% limit applies ($1,000)). • Change from a separate return to a joint re- you made cash contributions that you elected Because your $5,000 carryover contribution turn in a later year, not to treat as qualified cash contributions for • Change from a joint return to a separate re- 2020 of $9,500 to 50% limit organizations. The does not exceed the smaller limit of $5,000, you can deduct it in full. turn in a later year, limit based on 60% of AGI applies to your cur- • Have a net operating loss, rent year cash contribution of $9,500 and carry- Your deduction is $12,000 ($6,000 + $1,000 + $5,000). You carry over the $2,000 balance of • Claim the standard deduction in a carry- over contribution of $1,000. You can deduct this over year, or year’s cash contribution and your carryover

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• Become a widow or widower. 2. A pledge card or other document prepared acknowledgment shows the date of the contri- Because of their complexity and the limited by or for the qualified organization that bution and meets the other tests just described, number of taxpayers to whom these additional shows the name of the organization and you don't need any other records. rules apply, they aren't discussed in this publi- states the organization doesn’t provide Contemporaneous written acknowledg- cation. If you need to figure a carryover and you goods or services in return for any contri- ment. Organizations typically send written ac- are in one of these situations, you may want to bution made to it by payroll deduction. knowledgements to donors no later than Janu- consult with a tax practitioner. If your employer withheld $250 or more from a ary 31 of the year following the donation. For single paycheck, see Contributions of $250 or the written acknowledgement to be considered More next. contemporaneous with the contribution it must Substantiation meet both of the following requirements. Contributions of $250 or More Requirements 1. Meet all the tests described under Ac- knowledgment, earlier; and You can claim a deduction for a contribution of You must keep records to prove the amount of $250 or more only if you have a contemporane- the contributions you make during the year. The 2. You must get it on or before the earlier of: ous written acknowledgment of your contribu- kind of records you must keep depends on the a. The date you file your return for the tion from the qualified organization or certain amount of your contributions and whether they year you make the contribution; or payroll deduction records. See Contemporane- are: ous written acknowledgement, later, for a de- • Cash contributions, b. The due date, including extensions, scription of when a written acknowledgement is • Noncash contributions, or for filing the return. considered “contemporaneous” with your con- • Out-of-pocket expenses when donating tribution. Payroll deductions. If you make a contribu- your services. tion by payroll deduction and your employer If you made more than one contribution of Note. An organization must generally give withholds $250 or more from a single paycheck, $250 or more, you must have either a separate you a written statement if it receives a payment you must keep: acknowledgment for each or one acknowledg- from you that is more than $75 and is partly a ment that lists each contribution and the date of 1. A pay stub, Form W-2, or other document contribution and partly for goods or services. furnished by your employer that shows the each contribution and shows your total contri- (See Contributions From Which You Benefit un- amount withheld as a contribution; and butions. der Contributions You Can Deduct, earlier.) Keep the statement for your records. It may sat- 2. A pledge card or other document prepared Amount of contribution. In figuring whether isfy all or part of the recordkeeping require- by or for the qualified organization that your contribution is $250 or more, don't com- ments explained in the following discussions. shows the name of the organization and bine separate contributions. For example, if you states the organization doesn't provide gave your church $25 each week, your weekly goods or services in return for any contri- Cash Contributions payments don't have to be combined. Each bution made to it by payroll deduction. payment is a separate contribution. A single pledge card may be kept for all contri- Cash contributions include payments made by If contributions are made by payroll deduc- butions made by payroll deduction regardless cash, check, electronic funds transfer, online tion, the deduction from each paycheck is trea- of amount as long as it contains all the required payment service, debit card, credit card, payroll ted as a separate contribution. information. deduction, or a transfer of a gift card redeema- If you made a payment that is partly for If the pay stub, Form W-2, pledge card, or ble for cash. goods and services, as described earlier under Contributions From Which You Benefit, your other document doesn't show the date of the You can't deduct a cash contribution, re- contribution is the amount of the payment that is contribution, you must have another document gardless of the amount, unless you keep one of more than the value of the goods and services. that does show the date of the contribution. If the following. the pay stub, Form W-2, pledge card, or other Acknowledgment. The acknowledgment must document shows the date of the contribution, 1. A bank record that shows the name of the meet these tests. you don't need any other records except those qualified organization, the date of the con- just described in (1) and (2). tribution, and the amount of the contribu- 1. It must be written. tion. Bank records may include: 2. It must include: Noncash Contributions a. A canceled check. a. The amount of cash you contributed, Substantiation requirements for contributions b. A bank or credit union statement. b. Whether the qualified organization not made in cash depend on whether your de- gave you any goods or services as a c. A credit card statement. duction for the contribution is: result of your contribution (other than d. An electronic fund transfer receipt. certain token items and membership 1. Less than $250, benefits), e. A scanned image of both sides of a 2. At least $250 but not more than $500, canceled check obtained from a bank c. A description and good faith estimate 3. Over $500 but not more than $5,000, or or credit union website. of the value of any goods or services 2. A receipt (or a letter or other written com- described in (b). If the only benefit you 4. Over $5,000. munication such as an email) from the received was an intangible religious The substantiation requirements for non- qualified organization showing the name benefit (such as admission to a reli- cash contributions of more than $500 also apply of the organization, the date of the contri- gious ceremony) that generally isn’t to any return filed for any carryover year. bution, and the amount of the contribution. sold in a commercial transaction out- side the donative context, the ac- 3. The payroll deduction records described knowledgement must say so and Amount of deduction. In figuring whether next. doesn’t need to describe or estimate your deduction is $500 or more, combine your the value of the benefit. claimed deductions for all similar items of prop- Payroll deductions. If you make a contribu- erty donated to any qualified organization dur- tion by payroll deduction, you must keep: If the acknowledgment doesn't show the ing the year. date of the contribution, you must also have a 1. A pay stub, Form W-2, or other document If you received goods or services in return, bank record or receipt, as described earlier, that furnished by your employer that shows the as described earlier in Contributions From does show the date of the contribution. If the date and amount of the contribution; and Which You Benefit, reduce your contribution by the value of those goods or services. If you

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figure your deduction by reducing the fair mar- is considered “contemporaneous” with your function constituting the donee’s ba- ket value of the donated property by its appreci- contribution. sis for exemption under Section 501 ation, as described earlier in Giving Property of the Internal Revenue Code or, in That Has Increased in Value, your contribution The acknowledgment must: the case of a governmental unit, an is the reduced amount. exclusively public purpose; 1. Be written. e. In the case of securities, the name of 2. Include: Deductions of Less Than $250 the issuer, the type of securities, and a. A description (but not necessarily the whether they were publicly traded as Except as provided below, no deduction will be value) of any property you contrib- of the date of the contribution; allowed for a noncash contribution of less than uted, $250 unless you get and keep a receipt from f. How you got the property, for exam- the qualified organization showing: b. Whether the qualified organization ple, by purchase, gift, bequest, inheri- gave you any goods or services as a tance, or exchange; 1. The name and address of the qualified or- result of your contribution (other than g. The approximate date you got the ganization to which you contributed; certain token items and membership property or, if created, produced, or benefits), and 2. The date and location of the charitable manufactured by or for you, the ap- contribution; c. A description and good faith estimate proximate date the property was sub- 3. A description of the property in sufficient of the value of any goods or services stantially completed; and described in (b). If the only benefit you detail under the circumstances (taking into h. The cost or other basis, and any ad- received was an intangible religious account the value of the property) for a justments to the basis, of property benefit (such as admission to a reli- person not generally familiar with the type held less than 12 months and, if avail- gious ceremony) that generally isn't of property to understand that the descrip- able, the cost or other basis of prop- sold in a commercial transaction out- tion is of the contributed property; and erty held 12 months or more. This re- side the donative context, the ac- quirement, however, doesn't apply to 4. For a security, the name of the issuer, the knowledgment must say so and publicly traded securities. type of security, and whether it is publicly doesn't need to describe or estimate traded as of the date of the contribution. the value of the benefit. For example, a security is generally con- Deductions Over $5,000 sidered to be publicly traded if the security 3. Be received by you on or before the earlier is (a) listed on a recognized stock ex- of: If you claim a deduction of over $5,000 for a change whose quotations are published a. The date you file your return for the noncash charitable contribution, you must have daily, (b) regularly traded on a national or year you make the contribution, or the Contemporaneous written acknowledgment regional over-the-counter market, or (c) (defined earlier), obtain a qualified written ap- quoted daily in a national newspaper of b. The due date, including extensions, praisal of the donated property from a qualified general circulation in the case of mutual for filing the return. appraiser, and complete Form 8283. A qualified fund shares. appraisal is not required for contributions of qualified vehicles for which you obtain a con- A letter or other written communication from the Deductions Over $500 temporaneous written acknowledgement, cer- qualified organization acknowledging receipt of but Not Over $5,000 tain inventory, publicly traded securities, or cer- the contribution and containing the information If you claim a deduction over $500 but not over tain intellectual property. See Deductions of in (1), (2), (3), and (4) will serve as a receipt. $5,000 for a noncash charitable contribution, More Than $5,000 in Pub. 561 for more infor- you must complete Form 8283 and have the mation. If it is impractical to get a receipt (for exam- Contemporaneous written acknowledgment ple, if you leave property at a charity’s unatten- (defined earlier). Your completed Form 8283 In addition to, or in lieu of, the items descri- ded drop site), you may satisfy the substantia- must include: bed in Deductions Over $500 but Not Over tion requirements by maintaining reliable written $5,000 earlier, your completed Form 8283 must records for each item of the donated property. 1. Your name and taxpayer identification include: number, Your reliable written records must include 1. The qualified organization’s taxpayer iden- 2. The name and address of the qualified or- the following information. tification number, signature, the date ganization, 1. The information in (1), (2), (3), and (4) signed by the qualified organization, and above. 3. The date of the charitable contribution, the date the qualified organization re- and ceived the property; 2. If you claim a deduction for clothing or a household item, a description of the condi- 4. The following information about the con- 2. The appraiser’s name, address, taxpayer tion of the clothing or item. tributed property: identification number, appraiser declara- tion, signature, and the date signed by the 3. The fair market value of the property at the a. A description of the property in suffi- appraiser; and time of the contribution and how you fig- cient detail under the circumstances ured the fair market value. (taking into account the value of the 3. The following additional information about property) for a person not generally the contributed property: familiar with the type of property to un- a. The fair market value on the valuation Deductions of at Least $250 derstand that the description is of the effective date; and but Not More Than $500 contributed property; b. A statement explaining whether the b. The fair market value of the property If you claim a deduction of at least $250 but not charitable contribution was made by on the contribution date and the more than $500 for a noncash charitable contri- means of a bargain sale and, if so, the method used in figuring the fair mar- bution, you must get and keep a contemporane- amount of any consideration received ket value; ous written acknowledgment of your contribu- for the contribution. tion from the qualified organization. If you made c. In the case of real or tangible prop- more than one contribution of $250 or more, erty, its condition; Note. The appraiser declaration must in- you must have either a separate acknowledg- clude the following statement: “I understand ment for each or one acknowledgment that d. In the case of tangible personal prop- that my appraisal will be used in connection shows your total contributions. See Contempo- erty, whether the donee has certified it with a return or claim for refund. I also under- raneous written acknowledgement, earlier, for a for a use related to the purpose or stand that, if there is a substantial or gross description of when a written acknowledgement

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valuation misstatement of the value of the prop- regularly and at or near the time you had the ex- group of similar items for which you claim a de- erty claimed on the return or claim for refund penses. duction of over $5,000. (However, if you con- that is based on my appraisal, I may be subject For example, your records might show the tributed publicly traded securities, complete to a penalty under section 6695A of the Internal name of the organization you were serving and Section A instead.) In figuring whether your de- Revenue Code, as well as other applicable pen- the dates you used your car for a charitable pur- duction for a group of similar items was more alties. I affirm that I have not been at any time in pose. If you use the standard mileage rate of 14 than $5,000, consider all items in the group, the 3-year period ending on the date of the ap- cents a mile, your records must show the miles even if items in the group were donated to more praisal barred from presenting evidence or testi- you drove your car for the charitable purpose. If than one organization. However, you must file a mony before the Department of the Treasury or you deduct your actual expenses, your records separate Form 8283, Section B, for each organ- the Internal Revenue Service pursuant to 31 must show the costs of operating the car that ization. The organization that received the prop- U.S.C. 330(c).” are directly related to a charitable purpose. erty must complete and sign Part IV of Sec- See Car expenses under Out-of-Pocket Ex- tion B. Qualified Conservation penses in Giving Services, earlier, for the ex- Vehicle donations. If you donated a car, Contribution penses you can deduct. boat, airplane, or other vehicle, you may have to attach a copy of Form 1098-C (or other state- If the contribution was a qualified conservation ment) to your return. For details, see Cars, contribution, your records must also include the How To Report Boats, and Airplanes, earlier. fair market value of the underlying property be- fore and after the contribution and the conser- Report your charitable contributions on Sched- Clothing and household items not in vation purpose furthered by the contribution. ule A (Form 1040), lines 11 through 14. good used condition. You must include with your return a Qualified appraisal, which is pre- For more information, see Qualified Conser- If you made noncash contributions, you may pared by a Qualified appraiser, of any single do- vation Contribution, earlier, and in Pub. 561. also be required to fill out parts of Form 8283. nated item of clothing or any donated house- See Noncash contributions, later. hold item that isn't in good used condition or better and for which you deduct more than Out-of-Pocket Expenses Cash contributions and out-of-pocket ex- $500. See Clothing and Household Items, ear- penses. Enter your cash contributions, includ- lier. If you give services to a qualified organization ing out-of-pocket expenses, on Schedule A and have unreimbursed out-of-pocket expen- (Form 1040), line 11. Qualified appraisal. A qualified appraisal ses, considered separately, of $250 or more is an appraisal document that: (for example, you pay $250 for an airline ticket Reporting expenses for student living • Is made, signed, and dated by a qualified to attend a convention of a qualified organiza- with you. If you claim amounts paid for a stu- appraiser (defined later) in accordance tion as a chosen representative), related to dent who lives with you, as described earlier un- with generally accepted appraisal stand- those services, the following two rules apply. der Expenses Paid for Student Living With You, ards; you must submit with your return: 1. You must have adequate records to prove • Meets the relevant requirements of Regu- the amount of the expenses. 1. A copy of your agreement with the organi- lations section 1.170A-17(a); zation sponsoring the student placed in • Has a valuation effective date no earlier 2. You must get an acknowledgment from your household, than 60 days before the date of the contri- the qualified organization that contains: bution and no later than the date of the 2. A summary of the various items you paid contribution. For an appraisal report dated a. A description of the services you pro- to maintain the student, and on or after the date of the contribution, the vided, 3. A statement that gives: valuation effective date must be the date of b. A statement of whether or not the or- the contribution; and ganization provided you any goods or a. The date the student became a mem- • Does not involve a prohibited appraisal services to reimburse you for the ex- ber of your household, fee. penses you incurred, b. The dates of his or her full-time at- You must receive the qualified appraisal be- c. A description and a good faith esti- tendance at school, and fore the due date, including extensions, of the mate of the value of any goods or c. The name and location of the school. return on which a charitable contribution deduc- services (other than intangible reli- tion is first claimed for the donated property. If gious benefits) provided to reimburse the deduction is first claimed on an amended you, and return, the qualified appraisal must be received Noncash contributions. Enter your noncash before the date on which the amended return is d. A statement that the only benefit you contributions on Schedule A (Form 1040), filed. received was an intangible religious line 12. benefit, if that was the case. The ac- Qualified appraiser. A qualified appraiser knowledgment doesn't need to de- Total deduction over $500. If your total is an individual with verifiable education and ex- scribe or estimate the value of an in- deduction for all noncash contributions for the perience in valuing the type of property for tangible religious benefit (defined year is over $500, you must complete Form which the appraisal is performed. earlier under Acknowledgment). 8283 and attach it to your Form 1040 or 1. The individual: 1040-SR. Use Section A of Form 8283 to report You must get the acknowledgment on or before noncash contributions for which you claimed a a. Has earned an appraisal designation the earlier of: deduction of $5,000 or less per item (or group from a generally recognized profes- 1. The date you file your return for the year of similar items). Also use Section A to report sional appraiser organization, or you make the contribution, or contributions of publicly traded securities. See b. Has met certain minimum education Deduction over $5,000 next, for the items you 2. The due date, including extensions, for fil- requirements and 2 or more years of must report on Section B. ing the return. experience. To meet the minimum ed- The IRS may disallow your deduction for ucation requirement, the individual noncash charitable contributions if it is more Car expenses. If you claim expenses directly must have successfully completed than $500 and you don't submit Form 8283 with related to use of your car in giving services to a professional or college-level course- your return. qualified organization, you must keep reliable work obtained from: written records of your expenses. Whether your Deduction over $5,000. You must com- i. A professional or college-level records are considered reliable depends on all plete Section B of Form 8283 for each item or educational organization, the facts and circumstances. Generally, they may be considered reliable if you made them

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ii. A professional trade or appraiser statements (by mail or in a digital format) or – Tips and links to help you determine if organization that regularly offers other government payment statements (Form you qualify for tax credits and deduc- educational programs in valuing 1099-G); and interest, dividend, and retirement tions. the type of property, or statements from banks and investment firms – A progress tracker. (Forms 1099), you have several options to A self-employment tax feature. iii. An employer as part of an em- – choose from to prepare and file your tax return. Automatic calculation of taxable social ployee apprenticeship or educa- – You can prepare the tax return yourself, see if security benefits. tion program similar to professio- you qualify for free tax preparation, or hire a tax nal or college-level courses. • The First Time Homebuyer Credit Account professional to prepare your return. Look-up (IRS.gov/HomeBuyer) tool pro- 2. The individual regularly prepares apprais- vides information on your repayments and als for which he or she is paid. Free options for tax preparation. Go to account balance. IRS.gov to see your options for preparing and 3. The individual is not an excluded individ- • The Sales Tax Deduction Calculator filing your return online or in your local commun- ual. (IRS.gov/SalesTax) figures the amount you ity, if you qualify, which include the following. can claim if you itemize deductions on See Pub. 561 for more information. • Free File. This program lets you prepare Schedule A (Form 1040). and file your federal individual income tax Easement on building in historic district. return for free using brand-name tax-prep- Getting answers to your tax ques- If you claim a deduction for a qualified conser- aration-and-filing software or Free File filla- tions. On IRS.gov, you can get vation contribution for an easement on the exte- ble forms. However, state tax preparation up-to-date information on current rior of a building in a registered historic district, may not be available through Free File. Go events and changes in tax law. you must include a qualified appraisal (defined to IRS.gov/FreeFile to see if you qualify for earlier), photographs, and certain other informa- • IRS.gov/Help: A variety of tools to help you free online federal tax preparation, e-filing, get answers to some of the most common tion with your return. See Qualified Conserva- and direct deposit or payment options. tion Contribution, earlier. tax questions. • VITA. The Volunteer Income Tax Assis- • IRS.gov/ITA: The Interactive Tax Assistant, tance (VITA) program offers free tax help Deduction over $500,000. If you claim a a tool that will ask you questions on a num- deduction of more than $500,000 for a contribu- to people with low-to-moderate incomes, ber of tax law topics and provide answers. persons with disabilities, and limited-Eng- tion of property, you must attach a Qualified ap- • IRS.gov/Forms: Find forms, instructions, lish-speaking taxpayers who need help praisal, which is prepared by a Qualified ap- and publications. You will find details on preparing their own tax returns. Go to praiser, of the property to your return. This 2020 tax changes and hundreds of interac- doesn't apply to contributions of cash, qualified IRS.gov/VITA, download the free IRS2Go tive links to help you find answers to your vehicles for which you obtained a contempora- app, or call 800-906-9887 for information questions. neous written acknowledgement, certain inven- on free tax return preparation. • You may also be able to access tax law in- tory, publicly traded securities, or intellectual • TCE. The Tax Counseling for the Elderly formation in your electronic filing software. property. See Regulations section 1.170A-16(e) (TCE) program offers free tax help to all (2). taxpayers, particularly those who are 60 In figuring whether your deduction is over year of age and older. TCE volunteers spe- Need someone to prepare your tax return? $500,000, combine the claimed deductions for cialize in answering questions about pen- There are various types of tax return preparers, all similar items donated to any qualified organi- sions and retirement-related issues unique including tax return preparers, enrolled agents, zation during the year. to seniors. Go to IRS.gov/TCE, download certified public accountants (CPAs), attorneys, If you don't attach the appraisal, you can't the free IRS2Go app, or call 888-227-7669 and many others who don’t have professional deduct your contribution, unless your failure to for information on free tax return prepara- credentials. If you choose to have someone attach it is due to reasonable cause and not to tion. preparer your tax return, chose that preparer willful neglect. • MilTax. Members of the U.S. Armed wisely. A paid tax preparer is: Forces and qualified veterans may use Mil- • Primarily responsible for the overall sub- Form 8282. An organization must file Form Tax, a free tax service offered by the De- stantive accuracy of your return, 8282 if, within 3 years of receiving property for partment of Defense through Military One- • Required to sign the return, and which it was required to sign a Form 8283, it Source. • Required to include their preparer tax iden- sells, exchanges, consumes, or otherwise dis- Also, the IRS offers Free Fillable Forms, tification number (PTIN). poses of the property. The organization must which can be completed online and then filed Although the tax preparer always signs the also send you a copy of the form. However, the electronically regardless of income. return, you’re ultimately responsible for provid- organization need not file Form 8282 to report ing all the information required for the preparer the sale of an item if you signed a statement on Using online tools to help prepare your re- to accurately prepare your return. Anyone paid Section B of Form 8283 stating that the ap- turn. Go to IRS.gov/Tools for the following. to prepare tax returns for others should have a praised value of the item, or a specific item • The Earned Income Tax Credit Assistant thorough understanding of tax matters. For within a group of similar items, was $500 or (IRS.gov/EITCAssistant) determines if more information on how to choose a tax pre- less. For this purpose, all shares of nonpublicly you’re eligible for the earned income credit parer, go to Tips for Choosing a Tax Preparer traded stock or securities, or items that form a (EIC). on IRS.gov. set (such as a collection of books written by the • The Online EIN Application (IRS.gov/EIN) same author or a group of place settings), are helps you get an employer identification Coronavirus. Go to IRS.gov/Coronavirus for considered to be one item. number (EIN). links to information on the impact of the corona- • The Tax Withholding Estimator (IRS.gov/ virus, as well as tax relief available for individu- W4app) makes it easier for everyone to als and families, small and large businesses, How To Get Tax Help pay the correct amount of tax during the and tax-exempt organizations. year. The tool is a convenient, online way If you have questions about a tax issue, need to check and tailor your withholding. It’s Tax reform. Tax reform legislation affects indi- help preparing your tax return, or want to down- more user-friendly for taxpayers, including viduals, businesses, and tax-exempt and gov- load free publications, forms, or instructions, go retirees and self-employed individuals. The ernment entities. Go to IRS.gov/TaxReform for to IRS.gov and find resources that can help you features include the following. information and updates on how this legislation right away. – Easy to understand language. affects your taxes. – The ability to switch between screens, Preparing and filing your tax return. After correct previous entries, and skip Employers can register to use Business receiving all your wage and earnings state- screens that don’t apply. Services Online. The Social Security Adminis- ments (Form W-2, W-2G, 1099-R, 1099-MISC, tration (SSA) offers online service at SSA.gov/ 1099-NEC, etc.); unemployment compensation employer for fast, free, and secure online W-2

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filing options to CPAs, accountants, enrolled Mail” to order a free copy of your transcript. If • Check or Money Order: Mail your payment agents, and individuals who process Form W-2, you prefer, you can order your transcript by call- to the address listed on the notice or in- Wage and Tax Statement, and Form W-2c, ing 800-908-9946. structions. Corrected Wage and Tax Statement. • Cash: You may be able to pay your taxes Reporting and resolving your tax-related with cash at a participating retail store. IRS social media. Go to IRS.gov/SocialMedia identity theft issues. • Same-Day Wire: You may be able to do to see the various social media tools the IRS • Tax-related identity theft happens when same-day wire from your financial institu- uses to share the latest information on tax someone steals your personal information tion. Contact your financial institution for changes, scam alerts, initiatives, products, and to commit tax fraud. Your taxes can be af- availability, cost, and cut-off times. services. At the IRS, privacy and security are fected if your SSN is used to file a fraudu- paramount. We use these tools to share public lent return or to claim a refund or credit. What if I can’t pay now? Go to IRS.gov/ information with you. Don’t post your SSN or • The IRS doesn’t initiate contact with tax- Payments for more information about your op- other confidential information on social media payers by email, text messages, telephone tions. sites. Always protect your identity when using calls, or social media channels to request • Apply for an online payment agreement any social networking site. personal or financial information. This in- (IRS.gov/OPA) to meet your tax obligation The following IRS YouTube channels pro- cludes requests for personal identification in monthly installments if you can’t pay vide short, informative videos on various tax-re- numbers (PINs), passwords, or similar in- your taxes in full today. Once you complete lated topics in English, Spanish, and ASL. formation for credit cards, banks, or other the online process, you will receive imme- • Youtube.com/irsvideos. financial accounts. diate notification of whether your agree- • Youtube.com/irsvideosmultilingua. • Go to IRS.gov/IdentityTheft, the IRS Iden- ment has been approved. • Youtube.com/irsvideosASL. tity Theft Central webpage, for information • Use the Offer in Compromise Pre-Qualifier on identity theft and data security protec- to see if you can settle your tax debt for Watching IRS videos. The IRS Video portal tion for taxpayers, tax professionals, and less than the full amount you owe. For (IRSVideos.gov) contains video and audio pre- businesses. If your SSN has been lost or more information on the Offer in Compro- sentations for individuals, small businesses, stolen or you suspect you’re a victim of mise program, go to IRS.gov/OIC. and tax professionals. tax-related identity theft, you can learn Filing an amended return. You can now file what steps you should take. Form 1040-X electronically with tax filing soft- Online tax information in other languages. • Get an Identity Protection PIN (IP PIN). IP ware to amend 2019 Forms 1040 and 1040-SR. You can find information on IRS.gov/ PINs are six-digit numbers assigned to eli- To do so, you must have e-filed your original MyLanguage if English isn’t your native lan- gible taxpayers to help prevent the misuse 2019 return. Amended returns for all prior years guage. of their SSNs on fraudulent federal income must be mailed. See Tips for taxpayers who tax returns. When you have an IP PIN, it Free interpreter service. Multilingual assis- need to file an amended tax return and go to prevents someone else from filing a tax re- tance, provided by the IRS, is available at Tax- IRS.gov/Form1040X for information and up- turn with your SSN. To learn more, go to payer Assistance Centers (TACs) and other dates. IRS.gov/IPPIN. IRS offices. Over-the-phone interpreter service Checking the status of your amended re- is accessible in more than 350 languages. Checking on the status of your refund. turn. Go to IRS.gov/WMAR to track the status • Go to IRS.gov/Refunds. Getting tax forms and publications. Go to of Form 1040-X amended returns. Please note • The IRS can’t issue refunds before IRS.gov/Forms to view, download, or print all of that it can take up to 3 weeks from the date you mid-February 2021 for returns that claimed the forms, instructions, and publications you filed your amended return for it to show up in the EIC or the additional child tax credit may need. You can also download and view our system, and processing it can take up to 16 (ACTC). This applies to the entire refund, popular tax publications and instructions (in- weeks. not just the portion associated with these cluding the Instructions for Forms 1040 and credits. 1040-SR) on mobile devices as an eBook at Understanding an IRS notice or letter • Download the official IRS2Go app to your IRS.gov/eBooks. Or you can go to IRS.gov/ you’ve received. Go to IRS.gov/Notices to mobile device to check your refund status. OrderForms to place an order. find additional information about responding to Call the automated refund hotline at • an IRS notice or letter. 800-829-1954. Access your online account (individual tax- payers only). Go to IRS.gov/Account to se- Contacting your local IRS office. Keep in Making a tax payment. The IRS uses the lat- curely access information about your federal tax mind, many questions can be answered on est encryption technology to ensure your elec- account. IRS.gov without visiting an IRS Taxpayer Assis- tronic payments are safe and secure. You can View the amount you owe, pay online, or tance Center (TAC). Go to IRS.gov/LetUsHelp • make electronic payments online, by phone, set up an online payment agreement. for the topics people ask about most. If you still and from a mobile device using the IRS2Go Access your tax records online. need help, IRS TACs provide tax help when a • app. Paying electronically is quick, easy, and Review your payment history. tax issue can’t be handled online or by phone. • faster than mailing in a check or money order. Go to IRS.gov/SecureAccess to review the All TACs now provide service by appointment, • Go to IRS.gov/Payments for information on how required identity authentication process. so you’ll know in advance that you can get the to make a payment using any of the following service you need without long wait times. Be- options. Using direct deposit. The fastest way to re- fore you visit, go to IRS.gov/TACLocator to find IRS Direct Pay: Pay your individual tax bill ceive a tax refund is to file electronically and • the nearest TAC and to check hours, available or estimated tax payment directly from choose direct deposit, which securely and elec- services, and appointment options. Or, on the your checking or savings account at no tronically transfers your refund directly into your IRS2Go app, under the Stay Connected tab, cost to you. financial account. Direct deposit also avoids the choose the Contact Us option and click on “Lo- Debit or Credit Card: Choose an approved possibility that your check could be lost, stolen, • cal Offices.” payment processor to pay online, by or returned undeliverable to the IRS. Eight in 10 phone, or by mobile device. taxpayers use direct deposit to receive their re- Electronic Funds Withdrawal: Offered only funds. The IRS issues more than 90% of re- • The Taxpayer Advocate when filing your federal taxes using tax re- funds in less than 21 days. Service (TAS) Is Here To turn preparation software or through a tax Help You Getting a transcript of your return. The professional. quickest way to get a copy of your tax transcript • Electronic Federal Tax Payment System: What Is TAS? is to go to IRS.gov/Transcripts. Click on either Best option for businesses. Enrollment is TAS is an independent organization within the “Get Transcript Online” or “Get Transcript by required. IRS that helps taxpayers and protects taxpayer

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rights. Their job is to ensure that every taxpayer • You face (or your business is facing) an TAS for Tax Professionals is treated fairly and that you know and under- immediate threat of adverse action; or stand your rights under the Taxpayer Bill of • You’ve tried repeatedly to contact the IRS TAS can provide a variety of information for tax Rights. but no one has responded, or the IRS professionals, including tax law updates and hasn’t responded by the date promised. guidance, TAS programs, and ways to let TAS How Can You Learn About Your know about systemic problems you’ve seen in Taxpayer Rights? How Can You Reach TAS? your practice. The Taxpayer Bill of Rights describes 10 basic TAS has offices in every state, the District of Low Income Taxpayer rights that all taxpayers have when dealing with Columbia, and Puerto Rico. Your local advo- Clinics (LITCs) the IRS. Go to TaxpayerAdvocate.IRS.gov to cate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. help you understand what these rights mean to LITCs are independent from the IRS. LITCs You can also call them at 877-777-4778. you and how they apply. These are your rights. represent individuals whose income is below a Know them. Use them. certain level and need to resolve tax problems How Else Does TAS Help with the IRS, such as audits, appeals, and tax What Can TAS Do For You? Taxpayers? collection disputes. In addition, clinics can pro- vide information about taxpayer rights and re- TAS can help you resolve problems that you TAS works to resolve large-scale problems that sponsibilities in different languages for individu- can’t resolve with the IRS. And their service is affect many taxpayers. If you know of one of als who speak English as a second language. free. If you qualify for their assistance, you will these broad issues, please report it to them at Services are offered for free or a small fee for be assigned to one advocate who will work with IRS.gov/SAMS. eligible taxpayers. To find a clinic near you, visit you throughout the process and will do every- TaxpayerAdvocate.IRS.gov/about/LITC or see thing possible to resolve your issue. TAS can IRS Pub. 4134, Low Income Taxpayer Clinic help you if: List. • Your problem is causing financial difficulty for you, your family, or your business;

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To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

Contributions you can deduct 3 Membership fees or dues 4 Types 2 A Conventions of a qualified Mexican charity 3 Acknowledgment 20 organization 6 Motor vehicles, donations of 8 Contemporaneous 20 Motor vehicles, fair market R Adoption expenses 8 value 11 Raffle or bingo 7 Airplanes, donations of 8 D Recapture: Appraisal fees 8 Daily allowance (per diem) from No exempt use 13 Assistance (See Tax help) a charitable organization 6 N Recapture of deduction of Deduction limits 14 Noncash contributions 20 fractional interest in tangible Determining fair market value 11 How to report 22 personal property: B Disaster relief 1 Substantiation requirements 20 Additional tax 10 Bargain sales 13 Donor-advised funds 8 Nondeductible contributions 7 Reminders: Blood donated 8 Disaster relief 1 Boats, donations of 8 Reporting 22 Boats, fair market value 11 E O Retirement home 7 Easement 10 Ordinary income property 12 Out-of-pocket expenses 14 C Out-of-pocket expenses in giving S Canadian charity 3 F services 5 Services, value of 8 Capital gain property 12 Food inventory 13 Split-dollar insurance Car expenses 6, 22 Foreign organizations: arrangements 7 Carryovers 19 Canadian 3 P Student 5 Cars, donations of 8 Israeli 3 Payroll deductions 20 Exchange program 5 Cash contributions, Mexican 3 Penalty, valuation Student living with you 5, 22 substantiation Form: overstatement 14 Substantiation requirements 20 requirements 20 8282 23 Personal expenses 8 Charity benefit events 4 8283 22 Private foundation 15 Church deacon 6 Foster parents 6 Private nonoperating T Clothing: Future interests in property 10 foundation 12, 15 Tangible personal property: Fair market value of 11 Private operating foundation 15 Future interest in 10 Contributions from which you Property: Tax help 23 benefit 4, 7 H Bargain sales 13 Time, value of 8 Contributions of property 8 Historic building 10 Basis 12 Token items 4 Contributions subject to special Household items: Capital gain 12 Travel expenses 6 rules: Fair market value of 11 Capital gain election 17 Travel expenses for charitable Car, boat, or airplane: How to report 22 Decreased in value 12 services 6 1098–C 8 Noncash contributions 22 Future interests 10 Tuition 7 Clothing 8 Increased in value 12 Fractional interest in tangible Inventory 13 personal property 8 I Ordinary income 12 U Future interest in tangible Introduction 2 Unrelated use 12 Underprivileged youths 6 personal property 8 Inventory 13 Publications (See Tax help) Uniforms 6 Household items 8 Israeli charity 3 Unrelated use 12 Inventory from your business 8 Partial interest in property 8 Q Patent or other intellectual L Qualified appraisal 22 V property 8 Legislation, influencing 7 Qualified appraiser 22 Volunteers 6 Property subject to a debt 8 Limit on itemized deductions 1 Qualified charitable Qualified conservation Limits on deductions 14 distributions 7 contribution 8 Calculation 16 Qualified organizations: W Taxidermy property 8 Foreign qualified organizations: Whaling captain 6 Contributions to nonqualified Canadian 2 When to deduct 14 organizations: M Israeli 2 Foreign organizations 7 Meals 8 Mexican 2

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