The Pension Protection Act of 2006 has severe implications for anyone taking charitable donations, both for cash, and in-kind. If you donate anything to your local thrift store, church or even the Salvation Army bell-ringers at Christmas, these changes affect you. Uncle Sam doesn't trust us anymore, the government was concerned that Americans were padding their returns:
"...where the government once was willing to trust you weren't padding the deducted value of small gifts, now you're going to need proof that you gave something-- and something of real value-- if you want to deduct it."
Check out LA Times Staff Writer Kathy M. Kristof's Charitable Donations Get Stricter Tax Rules.
We guess there are a lot of people who lie about their deductions, but how are you going to get a receipt when the collection plate is passed around? I suspect it may hurt smaller charities who can't keep up with paperwork. Any thoughts? Please share.
