Thursday, August 24, 2006

Pension Protection Act of 2006

On August 17, 2006, President Bush signed the Pension Protection Act of 2006. Under the Act, in order to claim a deduction for used clothing and household items, the items must be in "good" condition. Well, that's fine and dandy but the IRS has failed to provide us with a definition of "good". Therefore, I'm not real certain how this really changes things from a practical perspective. Also, under the Act, NO deduction is allowed for cash contributions, chekc or other monetary gifts unless the donor can show by written communication from the donee or bank record of the donor, what the amount of the contribution was, the date contributed and the name of the charity.


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