U.S. Senate Bill Limits In-Kind Donations Deductions

A bill passed by the U.S. Senate would place a limit on the tax deductions individuals and corporations can take for non-cash contributions, the Washington Post reported May 12.

The provision is part of an amendment to the Jumpstart Our Business Strength Act and is designed to control charitable-deduction abuses.

Under the provision, charities would be required to furnish donors with receipts showing how much a donated item sold for, and would limit the donor’s deduction to that amount. In addition, the measure would limit deductions for donated cars and intellectual property.

The U.S. House of Representatives is expected to pass the bill.