How to Take the Deduction

• In order to take a deduction for charitable donations, you must itemize your deductions. If you take the standard deduction, you are not allowed to deduct charitable gifts.
  
  

Limits on Deductions

• The IRS limits the deduction for charitable gifts based on your adjusted gross income (AGI). You cannot deduct more than 50 percent of your AGI in cash, 30 percent of your AGI in property or 20 percent in capital gains.
  
  

Excess Deductions

• If you make a donation that exceeds the deduction limits, you can carry over that deduction up to five years in the future. For example, if your AGI is $40,000 and you donated land worth $15,000, you could deduct $12,000 in the year when you gave it and $3,000 in the following year.
  
  

When Receipts are Needed

• Any donation over $250, whether it is monetary or in goods, must have a receipt given that records how much was given, when the donation was received and what, if anything, was received by the donor in return for the contribution.
  
  

When Appraisals are Needed

• If you make a donation of goods or real estate that you claim to be valued at $5,000 or more, you must have the items appraised and a receipt given so the value is documented for the IRS.