Test Your Knowledge: Donations and Record-Keeping Quiz

1. With all single charitable contributions valued at $250 or more, you need to have a receipt or written acknowledgment including which piece of information?
A. a description and estimate of the value of any goods or services provided
B. the amount of cash and description of any property given
C. date of the gift
D. all of the above

2. If you make a donation of $250 or more, you must send the receipt to the IRS. True or False

3. If you make a gift of property valued at more than $500, what additional records, if any, do you need?
A. You need to provide information on how you got the property.
B. You need to send only the receipt from the organization.
C. You need to also send an appraisal.
D. none of the above

4. If you want to deduct more than $5,000 for your gift, what do you need to obtain?
A. a simple, written acknowledgment from the organization
B. a special, written document from the organization, not a simple written acknowledgment
C. a qualified written appraisal
D. none of the above

5. If you receive tax statements informing you of how much income you received from your gift during the year and how it's taxed, what do you need to do with them?
A. Keep the forms in the event you are ever audited by the IRS.
B. Submit all the forms with your federal income tax return.
C. Do not submit the forms with your federal income tax return, but do submit them directly to the IRS.
D. File a separate form that combines all the information for the year. (Answers below)

Answers

1. D
2. False. You don't need to send it to the IRS, but you do need to have it at the time you send in your federal income tax return.
3. A
4. C
5. A

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