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Coping With Tax Reform

February 07, 1988

It seems odd the government, in the form of the IRS, would suddenly impose a severe penalty on people trying to help people!

We refer of course to the change in charitable contributions which can no longer be claimed as a deduction unless Form 1040 is itemized.

We had thought early in the year the change meant the cash donations would have to be itemized on the return as to the organization, address, and amount.

With that in mind, we carefully saved cancelled checks, 123 of them for a total of $3,335, only to find that itemizing means preparing a long form with regard to medical, casualty, etc.

This is like mixing oil and water as the people who have catastrophic expenses will be the least able to give money away.

We are forced to take the standard deduction, the same amount allowed people who do not give a dime to help others.

We are not wealthy--we just wanted to be instrumental in sharing with the less fortunate with the belief the government encouraged charity by absorbing a portion of the obligation on a nationwide basis.

We are disappointed for our part and regretfully predict a dramatic reduction in future cash donations!

Can we change the law again?




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