Documenting Your Year-End Donations
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If you plan to make donations this year in order to get tax deductions for this year, you must make them today: Saturday.
If your favorite charity takes credit card donations -- it should -- call it today. See if anyone is there to accept your money.
Because January 1, 2006, falls on a Sunday, you should assume that a large donation to your church will be challenged by an IRS auditor as having been made on January 1, even though your check is dated December 31. You must have proof to the contrary.
To prove that you made the donation today, you should request a mailing receipt. You can get one for an extra 37 cents per letter at the local USPS. You don't need to use the more expensive certified mail to prove your case. Just ask for a stamped receipt. (Include a photocopy with your IRS 1040 form.)
This means that you had better get to the Post Office before it closes today.
If you are reading this after noon, you will have to drive to a private mail box center or UPS center.
Get your deduction for this year's income.
Happy Old Year!
Gary "A Bird in Hand" North