The new Pension Protection Act of 2006 overhauls the tax rules for deducting charitable donations. If you’re not careful, the tax reforms can hit you right where it hurts . . . in your pocketbook. But with some astute planning, you can avoid the worst tax complications. Plus, if you dig deep enough, you can mine some of the favorable tax nuggets buried in the law.
Here’s a rundown of the law’s key provisions for charitable deductions:
The new law significantly tightens the rules for substantiating charitable donations of cash or cash equivalents. Effective for contributions in tax years beginning after Aug. 17, 2006, you can’t deduct any contribution of cash, check or other monetary gift unless you can show a bank record or from the charity indicating:
• The contribution’s amount.
• The date you made the contribution.
• The charitable organization’s name.
Therefore, you generally won’...(register to read more)