More Giving Statement Info and Taxes

I'm no tax expert or advisor, so consult your tax advisor before you do anything. But as I was working on taxes last night, and reading the 1040 instructions and the instructions for Schedules A & B, I came across additional information related to yesterday's post. Yes, I usually do my own taxes and yes, I read the instructions; interesting reading actually. I like to try and figure out why they have us do the different calculations, where they're getting the numbers from, etc. etc. Through the course of my reading last night (the following were copied straight out of the instruction books), I discovered...

Volunteers can deduct out-of-pocket expenses and mileage
Contributions can be in cash (keep canceled checks, receipts, or other reliable written records showing the name of the organization and the date and amount given), property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. But, if the volunteer work was to provide relief related to Hurricane Katrina, the amount is 32 cents a mile. Add parking and tolls to the amount you claim under either method. But do not deduct any amounts that were repaid to you. (See 2006 Instructions for Schedules A & B (Form 1040), page A-4)

A detailed explanation of the $250 threshold
You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) below.
1. The amount of any money contributed and a description (but not value) of any property donated.
2. Whether the organization did or did not give you any goods or services in return for your contribution. If you did receive any goods or services, a description and estimate of the value must be included. If you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but it does not have to describe or value the benefit. In figuring whether a gift is $250 or more, do not combine separate donations. For example, if you gave your church $25 each week for a total of $1,300, treat each $25 payment as a separate gift. If you made donations through payroll deductions, treat each deduction from each paycheck as a separate gift. See Pub. 526 if you made a separate gift of $250 or more through payroll deduction.
(See 2006 Instructions for Schedules A & B (Form 1040), page A-5)

New requirements for contributions of money
New record keeping requirements for contributions of money. For charitable contributions of money, regardless of the amount, you must maintain as a record of the contribution a bank record (such as a cancelled check) or a written record from the charity. The written record must include the name of the charity, date, and amount of the contribution.
(See 2006 Instructions for Schedules A & B (Form 1040), page A-1)


Consult your tax advisor as to how these paragraphs relate to your situation.