Saturday, December 11, 2010

YEAR-END CHARITABLE DEDUCTION REMINDER

Mail checks for deductible items before year-end to ensure a 2010 write-off. The tax rules allow you to claim the deduction this year even if the checks do not clear until January.

If you are charging deductible items, make sure you know the rules.

For charges that you make with a retail store credit card, you are allowed to claim the deduction for the item only in the tax year in which you pay the bill.


For transactions made with a bank credit card, you take the deduction in the tax year that you charged the goods, even if you pay the bill next year.