The journal. (Caldwell, Ohio) 1934-1961, 1958-04-03
Contributions

the Internal Revenue Service for
this district today explained the
rules for deducting charitable
contributions on individual in
come tax returns for 1857.
To deduct contributions, you
must itemize your deductions on
page two of Form 1040. You can
deduct gifts to religious, charit-
able, educational, scientific, or
literary organizations, and or
ganizations for the prevention of
cruelty to children or animals,
so long as the organization to
which you contribute IS not
operated for personal profit and
does not carry on propaganda or
otherwise attempt to influence
legislation.
Gifts to veterans organiza-
tions, or to governmental agen-
cies are deductible if used for
public purposes. So also are gifts
to fraternal organizations for
which you receive personal
benefit. For example, you can
deduct gifts to a YMCA, but not
membership dues.
Gifts of property are deduc-
tible in the amount of the fair
market value of the property at
the time of contribution You
are not permitted to deduct the
value of personal services you
perform for qualified organiza-
tions. You can, however. deduct
out of pocket expenses you pay
in rendering the services, includ-
ing the purchase price and up
keep of uniform; transportation
expenses; and the cost of meals
and lodging while away from
home overnight on behalf of the
organization.
In order TO claim deduction,
the organization to which you
contribute must have been or
ganiZed or created in the United
States or its possessions. or under
the law of the u. s., its posses
sions, or one Of the states.
Following is a partial list OF
the organizations to which you
can contribute and claim a
deduction:
Churches and church organiza
tions; nonprofit schools and hos
pitalS; Community chests and
United Givers funds; American
Red Cross; Salvation Army
Boy Scouts, Girl Scouts and
other similar organizations; Vet
erans' organizations such as the
American Legion and Veterans
of Foreign Wars (but not mem
bership dues); Y.M.C.A. ano
YWC.A.; American Cancer
Society, National Polio Founda-
ton, Tuberculosis Societies
Muscular Dystrophy Society, and
other similar nonprofit organiza-
tionS.
You cannot deduct gifts to any
Of the following, no matter ROW
worthy or deserving:
Relatives, friends or other in
dividualS; social clubs; politica
parties or candidates; Chamber.
of Commerce; labor unions
propaganda organizations
AS d general rule, your deduc
ton for contributions may no
exceed 20 percent of your adjust
ed gross income. Your adjusted
gross income is the amount to bt
entered in line II on page one
of your return Form l040 Fol
example, if the amount on lin,
IL of your return is $4,000, yol
may not deduct more than $l,20l
for charitable contributions ~
matter how much you gave.
There is one exception to thi
general rule. You may deduct vi
to 80 percent Of your adjusted
gross income if the extra 10 per
cent consists of gifts to churches
taX-eXempt educational inStitu
tions, taX-exempt hospitals, o
certain medical research organ
izations.
Mr.. LOCKER advised taxpayer
who have questions concerning
the deduction for contribution
or any other matter on thei
Federal income tax return 70
1857 to telephone or visit III
local office of the Internal Rev
enue Service.