THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2025 71 checks or written communication from the charity) for all cash contributions. Non-cash contributions require a receipt regardless of the value of the contribution. For cash and noncash contributions of $250 or more, the charity must provide an official tax receipt along with an additional acknowledgment stating whether any goods or services were given in return for the donation. If any goods or services are received, the acknowledgment should provide a description and a good faith estimate of the goods or services received by the donor. Taxpayers must have the complete official tax receipt of contributions on or before the earlier of the date a return is filed or the due date (including extensions) for filing such return. Taxpayers obtaining receipts from a charity after these dates may be denied a charitable deduction. For non-cash contributions in excess of $500, the taxpayer must complete Form 8283 (Non-cash Charitable Contributions) and attach it to their Form 1040. Contributions over $5,000 require a written appraisal. Readers should note that in Duncan Bass v. Commr. T.C. Memo 2023-41, the court affirmed that individual donation values of similar items of property (e.g., clothing, furniture) must be added together to determine if the $5,000 donation value threshold is met, thus requiring an appraisal. For more information, AFSA recommends Tax Topic 506, Publications 526 and 1771, the Schedule A and Form 1040 instructions, and IRC Section 170. Readers should review 1.170A-13(c)(1)(i) and 1.170A-13(c)(7)(iii) for more information about similar items of property. Conclusion There were minimal changes to tax law impacting individuals during 2024, which is also reflected in the minor changes made to draft Form 1040 and the numbered schedules for 2024. The results of the 2024 presidential and congressional elections (which were unknown when this article was written) and the expiration of the TCJA provisions for individuals at the end of 2025 will probably bring many significant changes to individual tax law in the coming months and years. Consequently, we encourage readers to monitor significant tax law changes that may be finalized in the coming months and retroactively applied to 2024 tax returns and that may significantly impact future year tax planning strategies. While AFSA encourages its members to continue their tax education by reading the Internal Revenue Code, IRS regulations, and referenced IRS publications, there is no substitute for professional help for specific questions, particularly for complex international income and assets issues. Though not comprehensive, we hope this guide provides a useful summary of the significant tax laws and updates that may have an impact on your 2024 tax returns. Best wishes for the coming tax filing season. n
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