Who can take the deduction for qualified charitable deductions, and what is required to qualify for the deduction?
Taxpayers that donate to nonprofit organizations that are exempt from federal tax under sections 501(c)(3), (4), or (5) of the Internal Revenue Code can deduct 75% of the amount donated when computing their excise tax base. The donations must be monetary. The exempt organization must certify to the taxpayer that the donation was spent to purchase goods or services subject to Tennessee sales and use tax and that the sales and use tax was actually paid. The nonprofit entity must provide to the taxpayer a certification form once the donation is spent. This certification form is available at www.state.tn.us/revenue/forms/fae/excisededuction.pdf. This will be used to determine the available deduction.
Related Questions
- If an individual donor itemizes deductions, can they take a charitable income tax deduction on their federal income tax return for the amount of the contribution to GCSSF?
- Are all non-profit organizations tax exempt and may all donations given to them qualify as a charitable deduction?
- Who can take the deduction for qualified charitable deductions, and what is required to qualify for the deduction?
