Highlights of 2008 Tax Changes
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The federal estate tax exemption amount is $2,000,000 in 2008 increasing to $3,500,000 in 2009. The highest federal estate tax rate is 45% in 2007-2009. The federal estate tax will be repealed on 1/1/10 until 12/31/10.

The annual gift exclusion rises to $13,000 in 2009, up from $12,000 in 2008.

 
Under the new law, taxpayers must keep records of all cash donations. Individuals must show a receipt from the charity, a canceled check, or credit card statement to prove their donation. No tax deduction will be allowed if the taxpayer cannot provide any supporting documentation. Non-cash donations, such as cars, clothing, and household goods, must be in good condition.

Acknowledgement required: If the claimed value of the car is more than $500, you must have a written acknowledgement of your donation from the organization and must attach it to your return

 

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