Phone: 845-566-0391
Email: info@petromccrum.com
1662 Route 300, Suite 126, Newburgh, NY 12550
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Tips of the Month - November, 2006
Tax Tip:
The new Pension Protection Act of 2006 is loaded with provisions affecting those who donate to charity.
The new law effectively ends deductions for out-of-pocket cash donations unless a receipt is obtained from the recipient organization. Starting with 2007, a deduction for any cash donation is disallowed unless the donor retains a bank record or a written communication from the recipient organization showing the name of the organization and the date and amount of the donation.
Effective August 17, 2006, under the new law, no deduction is allowed for a charitable donation of clothing or household items unless the clothing or household item is in “good” used condition or better. The IRS will also deny and donation of clothing or a household item that has minimal monetary value, such as used socks and used undergarments.
QuickBooks Tip:
One method of tracking and reimbursement of out-of-pocket expenses is to set up a separate liability account “Due to Client”. Then as expenses are incurred go to register for “Due to Client” account and record expense. At the end of each month when you want to reimburse yourself just simply “Write Check” for the balance in the “Due to Client“ account.
