A snapshot of #tax issues related to large non-cash charitable deductions:
– Taxpayers can avoid paying income tax on up to half of their income by making a donation to a properly registered #charity, so this is an important area of tax practice and dispute
– Most taxpayers do not make charitable donations large enough to warrant this special tax accounting treatment
– Noncash charitable donations have specific inflexible rules
– Noncash charitable donations are a frequently litigated area
– IRS wins 9/10 of the cases it challenges
– Problem areas include syndicated conservation easement, improperly organized charities and improper valuation of the donation
– Law is governed by IRC Section 170
The Office of Taxpayer Advocate Service published a helpful brochure on this in 2017
Related issues particularly important in my tax practice at the New Jersey bayshore:
1) Donation of a boat requires an appraisal report by a marine surveyor (that we help to arrange), and
2) Donation of a private property conservation easement is generally not risky (compared to the syndicated deals).