Woburn, MA (PRWEB) March 26, 2010
Since first being approved for sale on the App Store back in February, sales for the UDoGood App have been strong. For much of the month, sales volume for this App has consistently earned it a spot as one of the top 100 paid Finance Apps available from the App Store.
Even so, the developers of the UDoGood App have already upgraded this app that helps people calculate and substantiate their tax deduction for donated goods by tracking these donations. "We have released a version of UDoGood 1.0.2 to include the tracking of cash donations. We also added an 'Other' category for recording miscellaneous donations to charities. It is available on iTunes," announced Wendy Richardson, founder of Twiddy Bits Software LLC, and one of the developers of the UDoGood App.
Determining the value of non-cash contributions is quite subjective. While pretty much every other tax break is calculated based on the amount of money spent during the year, contributions of clothing and household items are claimed based on an estimate of the fair market value of each item donated. Since this tax break provides taxpayers with an opportunity for exaggeration, non-cash contributions are definitely on the IRS' radar screen.
"One big hurdle for people looking to claim this tax break came about in 2006, when Congress instituted a higher standard for deducting non-cash contributions," says Andrew Schwartz CPA of Woburn, MA. "Under the current rules, you can only claim a deduction for non-cash contributions that are in 'good condition or better'. Please note that as part of this change, the IRS now routinely requests a list of each item donated, including its condition and fair market value, from most taxpayers who are being audited."
UDoGood Can Help
Properly documenting and valuing donated clothing and household items has become more important now that only those items in good condition or better qualify for a deduction. Anyone unlucky enough to get audited will learn that the IRS will most likely use this new higher standard as a way to greatly reduce the deduction claimed - unless that taxpayer is able to substantiate that the donated goods were in good condition or better, and can also demonstrate how he or she came up with the total fair market value.
To easily track and put a value on the goods donated each year, make sure to use UDoGood, a new (and fun) App for the iPhone and iPod touch that helps taxpayers document charitable donations of clothing and household goods. "UDoGood includes suggestions to help you determine the fair market value of your donations," explains Bill Rounds, one of the App's developers. "If you have an iPhone, UDoGood also lets you take photos of your donations to provide a visual record of your contributions. And with UDoGood, you can e-mail your list of donated goods to your tax preparer or to yourself."
"Understanding the post-2006 rules and using UDoGood to document what you give away is the winning combination to ensure that the deduction you claim on your tax return is fairly stated and will also withstand reasonable scrutiny from our friends at the IRS," says Schwartz.
Apple, the Apple logo, iPod, and iTunes are trademarks of Apple Inc., registered in the U.S. and other countries. iPhone is a trademark of Apple Inc.
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