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Avoid Charity Tax Traps During the Holidays

Be sure to keep a record of charitable contributions.
JOPLIN, MO---Certified public accountants say the main issue is people don't keep records of their contributions. An example, many charities will accept unwanted cars, trucks, and other types of vehicles. But if you donate, and a charity sales the vehicle you can only deduct the sales proceeds.

A Joplin CPA says know the rules for charitable deductions to stay out of trouble with the IRS.

CPA Nick Myers says, "Also take all your deductions and have them substantiated, and in the case of charitable contributions, it's like we talked about 250, 500, 5,000 are the key numbers to watch for."

An item worth more than $250 you'll need a receipt and a record of the contribution. Anything over $5,000 will need more information provided.
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