top 6 rules for charitable deductions - franskoviakcpa.com · self-employed insurance salesman...

Newsletter November 2017

Is it November already!? The year 2017 is nearly over and soon we will have to organize our tax information to submit to the IRS. For those who would like to

reduce their tax bill by deducting charitable contributions made throughout the year, please remember the rules:

1. Only tax exempt 501(c)(3) organizations qualify for a tax deduction. This can be determined by contacting the organization, checking the IRS website (IRS.gov), or from websites like Charity Navigator (charitynavigator.org).

2. You must itemize your deductions. Be sure that all of your itemized deductions (medical expenses, state and local taxes, property taxes, mortgage interest, tax preparation fees, investment expenses, hobby expenses, etc.) add up to more than the standard deduction.

The standard deduction for single taxpayers and married couples filing separately is $6,350, for married couples filing jointly, the standard deduction is $12,700, and for heads of households, the standard deduction is $9,350 for 2017. Compare your expenses

Top 6 Rules For Charitable Deductions

667 E. Big Beaver Rd, Suite 107, Troy, MI 48083 | 855-TAX-FIXX | www.FranskoviakCPA.com

Michael Franskoviak, CPAPresident

Whether your contributions are in the form or money, belongings, or time, they

are surely appreciated and possibly tax deductible. If you have any questions, please give us a call at

855-TAX-FIXX (855-829-3499)

or

[email protected]

www.FranskoviakCPA.com

www.IRSTaxProblemSolvers.com

www.WeSolveIRSTaxProblems.com

www.HelpWithIRSTaxes.com

to the standard deduction to determine whether you will itemize or not.

3. Get documentation of your donation. Tax preparers must document the name of the organization, the date the donation was made, and the amount donated. If you are ever audited, you will be asked to substantiate all claimed donations with receipts, cancelled checks, bank statements, or credit card statements.

4. Many people make non-cash contributions throughout the year in the form of clothing and household items we no longer use. The value of used clothing and other personal items are obviously far less than the price paid and should be valued at thrift store prices.

For noncash donations valued up to $500, the date the donation was made and the location of the organization must be documented. If total noncash donations for the year exceed $500, Form 8283 must be completed. Form 8283 requires specific information about the donation including the address of the


organization, description of the donated property, and the means by which the donor acquired the property. If your donation exceeds $5,000, an appraisal must be obtained and submitted with the tax return.

5. If a car or other vehicle is donated, be sure to attach Form 1098C (Contributions of Motor Vehicles, Boats, and Airplanes) to your return. This should be provided by the charitable organization receiving the vehicle. Generally, the fair market value of the vehicle is deductible with exceptions.

6. If you volunteer your time and personal resources to a qualified charitable organization, you may be able to deduct some of the expenses incurred. For example, you may be able to deduct a standard mileage rate of 14 cents per mile to figure your contribution. You may also deduct reasonable expenses paid to allow underprivileged youths to attend athletic events, movies, or dinners if the youths were selected by a charitable organization whose goal is to reduce juvenile delinquency.

If you were selected by a qualified organization to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including meals and lodging. You can also deduct the cost of uniforms required while performing donated services for a charitable organization.


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WORD SEARCH

Cheryl Olson has been with Franskoviak & Company,

P.C. as an office manager and tax specialist since

April of 2014. Since spring, Cheryl and her friend,

Helen, have kept themselves busy making coasters

and selling them at local arts & craft shows. They

call themselves Coaster Girls and have enjoyed a

lot of unexpected success at venues such as the

Clawson Fire Work Arts & Crafts Show, the Hazel

Park Art Fair and Birch Run’s Fantasticon. They

most recently participated in the 41st Frost Craft

Show located in the Frost Middle School in Livonia

where there were over 130 vendors. They enjoy

the time sent together making the coasters and

meeting many wonderful people while participating

in these events.

Franskoviak Office NEWS


“John Foran was outstanding in handling my tax challenge with the IRS. Very professional company, with the interest of solving the client’s challenges. [Franskoviak & Company, P.C.] lowered my tax bill significantly - allowing me to keep my house.”

Edward R. of Saline, Michigan

Retired teacher

Saved: $384,186.19

667 E. Big Beaver RdSuite 107Troy, MI 48083

Leon CarterSelf-Employed Insurance SalesmanCanton, MichiganOffer In Compromise9 Months

Leon owed $186,000 in back taxes, penalties, and interest. He had previously gone to another tax resolution competitor that had placed him onto a 10 year payment plan of $820 per month. Leon was hoping to retire soon, but with a 10 year long payment plan, he would not be able to. We analyzed his financial situation and advised that he would qualify for an Offer in Compromise (OIC). The team at Franskoviak & Company, P.C. settled his IRS tax bill of $186,423 for only $14,180, a settlement rate 7.6%! Now Leon could look forward to his retirement without worry of this large tax bill looming over him.

Leon had wonderful words of praise once he received the news:

“Franskoviak & Company, P.C. has a very high level of discretion and professionalism. The document and information collection process was very thorough and timely. I now have peace of mind having this matter resolved, and liked being kept informed throughout the process. Thank you.”

Owed: $186,423 Settled: $14,180

SUCCESS STORY

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