Tax Breaks Florida Residents Can Take for Sending Aid to Haiti
Congress is changing the rules for tax breaks on charitable donation made to Haiti relief efforts in the wake of the devastating earthquake that ravaged the country earlier this year. The breaks are modeled after similar measures passed after Hurricane Katrina and the Indian Ocean Tsunami.
One bill allows Florida taxpayers to deduct any donations made to Haiti relief efforts through the end of February 2010 on their 2009 taxes. For those who texted a $10 donation to the Red Cross (by texting "HAITI" to "90999"), a phone bill showing the donation is considered sufficient proof. It is estimated that the Red Cross has received nearly $25 million in text message donations.
Congressional representatives have stated that the bill would provide an immediate benefit for those who have already given and an incentive for those who are considering it. But keep in mind that the deduction is only applicable if you itemize deductions.
A second bill would exempt cash donations from certain deduction limits for both businesses and individuals. It also would extend a special rule for corporations to deduct the market value of food contributions.
Find out more about this story at Tax Breaks For Haiti Relief Widening.
If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for tax planning legal counsel.
