With the giving holiday season coming up around the corner, being as prepared as possible to make donations can help you when tax time comes around. Documentation is key when you are making donations. When making a cash or any monetary donations, keep a written record of the transaction. It must include the date, the amount, and the name of the organization on it. If you are giving items, make sure the documentation is there as well. Take photos of the items and record them at their market value. Lastly, make sure the donations are made during the tax year you are in. If you want to deduct them for 2015, you have until December 31st!
Donations can make a big impact on your tax returns, so get out and start donating the smart way!