Do You Need A Receipt for a Good Deed?

By Elsie Dudukovich0 Comments
 
iStock_000003638020Medium.jpgThe holiday season tends to inspire people to give and donate. Do you know the IRS rules regarding charitable contributions?

IRS Publication 526 focuses on how to claim a deduction for charitable contributions.  From the publication, it also explains:
  • organizations qualified to receive them,
  • the types of contributions you can deduct,
  • how much you can deduct,
  • what records to keep, and
  • how to report them.
If you hold a traditional IRA, SEP or SIMPLE IRA you need to take required minimum distributions (RMD) when you reach age 70 1/2, per the IRS. Traditional IRA owners have the option of exploring a qualified charitable distribution (QCD) as you decide the best way of meeting that requirement.  

IRS Publication 590-B defines a qualified charitable distribution as “…an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity.” 

Consulting with a trusted qualified professional can help you make an appropriate decision regarding your personal legal, tax, and financial matters. 

Equity Trust Company’s Distribution Forms are used when taking Required Minimum Distributions and any personal distribution from an account.  When you decide to take a distribution from your account, our client service team can assist you in completing our form to process your request. Call 888-382-4727.