CLIENT ALERT

For additional information contact:
Andrea Kriznauski
Marketing Coordinator
akriznauski@untracht.com

August 1, 2005

Charitable Contributions

Vehicle Charitable Donation Reporting Requirements

Taxpayer must obtain a contemporaneous written acknowledgement for any "qualified vehicle" donation if the claimed value of the vehicle exceeds $500.

Qualified vehicle is motor vehicle, boat or aircraft.

The donee organization must provide written acknowledgement to the donor within 30 days of (1) the contribution of the vehicle, or (2) the date of sale of the vehicle by the donee organization if it sells the vehicle without any significant intervening use or material improvement.

Effective for vehicle contributions made after December 31, 2004

Noncash Charitable Contributions Reporting Requirements

For property valued at more than $500, the taxpayer must include with their return a written description of the donated property and such other required information as required by the IRS.

For property valued at more than $5,000, the taxpayer must include with their return whatever information about the property and about the qualified appraisal of that property as the IRS prescribes.

Effective for noncash contributions made after June 3, 2004