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Lines 7 through 11—Contributions
You may deduct what you actually gave to organizations that
are religious, charitable, educational, scientific or literary in
purpose. You may also deduct what you gave to organizations
that work to prevent cruelty to children or animals. In general,
contributions deductible for federal income tax purposes are
also deductible for Kentucky.
Examples of qualifying organizations are:
Churches, temples, synagogues, Salvation Army, Red
Cross, CARE, Goodwill Industries, United Way, Boy
Scouts, Girl Scouts, Boys and Girls Clubs of America, etc.
Fraternal orders if the gifts will be used for the purposes
listed above.
Veterans’ and certain cultural groups.
Nonprofit schools, nonprofit hospitals and medical
research organizations.
Federal, state and local governments if the gifts are solely
for public purposes.
If you contributed to a qualifying charitable organization
and also received a benefit from it, you may deduct only
the amount that is more than the value of the benefit you
received.
Contributions You MAY Deduct
Contributions may be in cash, property or out-of-pocket
expenses you paid to do volunteer work for the kinds of
organizations described above. If you drove to and from the
volunteer work, you may take 16 cents a mile or the actual
cost of gas and oil. Add parking and tolls to the amount you
claim under either method. (Do not deduct any amounts that
were repaid to you.)
Note: You are required to maintain receipts, cancelled checks
or other reliable written documentation showing the name of
the organization and the date and amount given to support
claimed deductions for charitable contributions.
Separate contributions of $250 or more require written
substantiation from the donee organization in addition to
your proof of payment. It is your responsibility to secure
substantiation. A letter or other documentation from the
qualifying charitable organization that acknowledges
receipt of the contribution and shows the date and amount
constitutes a receipt. This substantiation should be kept in
your files. Do not send it with your return.
See federal Publication 526 for special rules that apply if:
your total contributions exceed 60 percent of Kentucky
Adjusted Gross Income,
If a Kentucky Net Operating Loss Deduction (KNOLD) is
present, you must figure your Kentucky Adjusted Gross
income without the KNOLD before applying the 60%
limitation. 740, line 7 less Schedule M, line 15 equals
your Kentucky Adjusted Gross Income without KNOLD.
your total deduction for gifts of property is over $500,
you gave less than your entire interest in the property,
your cash contributions or contributions of ordinary
income property are more than 30 percent of your
Kentucky Adjusted Gross Income,
your gifts of capital gain property to certain organizations
are more than 20 percent of your Kentucky Adjusted
Gross Income, or
you gave gifts of property that increased in value, made
bargain sales to charity, or gave gifts of the use of
property,
you expect to receive any state or local tax credit for a
contribution made.
You MAY NOT Deduct as Contributions
Travel expenses (including meals and lodging) while away
from home unless there was no significant element of
personal pleasure, recreation or vacation in the travel.
Political contributions.
Dues, fees or bills paid to country clubs, lodges, fraternal
orders or similar groups.
Value of any benefit, such as food, entertainment or
merchandise that you received in connection with a
contribution to a charitable organization.
Cost of raffle, bingo or lottery tickets.
Cost of tuition.
Value of your time or service.
Value of blood given to a blood bank.
The transfer of a future interest in tangible personal
property (generally, until the entire interest has been
transferred).
Gifts to:
Individuals.
Foreign organizations.
Groups that are run for personal profit.
Groups whose purpose is to lobby for changes in the
laws.
Civic leagues, social and sports clubs, labor unions and
chambers of commerce.
Contributions for which you receive any state or local
tax credit of more than 15% of the contribution.
Line 7—Enter all of your contributions paid by cash or check
(including out-of-pocket expenses).
Line 8—Enter your contributions of property. If you gave used
items, such as clothing or furniture, deduct their fair market
value at the time you gave them. Fair market value is what
a willing buyer would pay a willing seller when neither has
to buy or sell and both are aware of the conditions of the
sale. If your total deduction for gifts of property is more than
$500, you must complete and enclose federal Form 8283,
Noncash Charitable Contributions. If your total deduction is
over $5,000, you may also have to obtain appraisals of the
values of the donated property. See federal Form 8283 and
its instructions for details.