Publication 526 |
2001 Tax Year |
When To Deduct
You can deduct your contributions only in the year you actually
make them in cash or other property (or in a succeeding carryover
year, as explained under How To Figure Your Deduction When Limits
Apply, later). This applies whether you use the cash or an
accrual method of accounting.
Time of making contribution.
Usually, you make a contribution at the time of its unconditional
delivery.
Checks.
A check that you mail to a charity is considered delivered on the
date you mail it.
Credit card.
Contributions charged on your bank credit card are deductible in
the year you make the charge.
Pay-by-phone account.
If you use a pay-by-phone account, the date you make a contribution
is the date the financial institution pays the amount. This date
should be shown on the statement the financial institution sends to
you.
Stock certificate.
The gift to a charity of a properly endorsed stock certificate is
completed on the date of mailing or other delivery to the charity or
to the charity's agent. However, if you give a stock certificate to
your agent or to the issuing corporation for transfer to the name of
the charity, your gift is not completed until the date the stock is
transferred on the books of the corporation.
Promissory note.
If you issue and deliver a promissory note to a charitable
organization as a contribution, it is not a contribution until you
make the note payments.
Option.
If you grant an option to buy real property at a bargain price to a
charitable organization, you cannot take a deduction until the
organization exercises the option.
Borrowed funds.
If you make a contribution with borrowed funds, you can deduct the
contribution in the year you make it, regardless of when you repay the
loan.
Conditional gift.
If your contribution is a conditional gift that depends on a future
act or event that may not take place, you cannot take a deduction. But
if there is only a negligible chance that the act or event will not
take place, you can take a deduction.
If your contribution would be undone by a later act or event, you
cannot take a deduction. But if there is only a negligible chance the
act or event will take place, you can take a deduction.
Example 1.
You donate cash to a local school board, which is a political
subdivision of a state, to help build a school gym. The school board
will refund the money to you if it does not collect enough to build
the gym. You cannot deduct your gift as a charitable contribution
until there is no chance of a refund.
Example 2.
You donate land to a city for as long as the city uses it for a
public park. The city does plan to use the land for a park, and there
is no chance (or only a negligible chance) of the land being used for
any different purpose. You can deduct your charitable contribution.
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