True or False QuestionTrue or false: Only cash contributions to qualified charitable organizations are deductible.True false question.TrueFalse

Answer

This statement is False. While cash contributions to qualified charitable organizations are deductible, they are not the only type of contributions that can be deducted.

Contributions can also include non-cash donations, such as:

1. Property Donations: Donating physical assets such as clothing, furniture, vehicles, or real estate can be deductible, usually at fair market value.

2. Volunteer Expenses: While the value of time spent volunteering is not deductible, certain expenses directly related to volunteering (e.g., supplies, mileage) can be.

3. Stocks and Bonds: Donating appreciated stocks or bonds can also provide a deduction based on the fair market value, avoiding capital gains taxes that would otherwise apply if the asset were sold.

In summary, both cash and non-cash contributions can be deductible if they meet the IRS requirements for qualified charitable donations.