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Lines 7 through 11—Contributions
You may deduct what you actually gave to organizations that are
religious, charitable, educational, scientic 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.
Nonprot schools, nonprot 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 benet from it, you may deduct only the amount that
is more than the value of the benet 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 14 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 les. 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 gure 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 signicant 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 rae, 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 prot.
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.