Tuesday, February 3, 2009
The IRS has issued an updated Publication 526, Charitable Contributions. The publication contains information useful in filling out 2008 tax returns, covering all the basic deduction rules. In addition, the publication highlights changes for 2008:
The Midwestern Disaster Relief Act: increases the standard mileage rate for cars used to provide help to victims of the Midwest storms and flooding; provides that taxpayers may not need to pay tax on money received from a nonprofit for mileage reimbursement; and provides that cash contributions related to the Midwestern disaster area are not subject to limits on itemized deductions or the 50% AGI limit.
Provisions due to expire at the end of 2007 have been extended for contributions made in 2008 and 2009: contributions of food inventory; IRA disributions given to charity; and the special deduction limit for qualified conservation easements.