The Internal Revenue Service highlighted in a Dec. 14 news release some changes to the tax law that will affect charitable gifts by individuals and businesses, including direct transfers from some individual retirement accounts to eligible charitable organizations.

The release (IR-2006-192) also described new rules for donating clothing, household items, and money to charities. All the changes stem from the Aug. 17 enactment of the Pension Protection Act (Pub. L. No. 109-280).

Under the new law, IRA owners age 701/2 or older can directly transfer, tax free, up to $100,000 per year to an eligible charitable organization in 2006 and 2007, IRS said in the release.

Transferred amounts are counted in determining whether the owner has met IRS's required minimum distribution rules, IRS said.

High-Valued Items Require Appraisals.

Clothing and household items donated after Aug. 17 must be in “good used condition or better,” the release said. But taxpayers can claim a deduction of more than $500 for any single item if a qualified appraisal is submitted with the tax return.

For a taxpayer to deduct a monetary charitable donation, he or she must have a bank record or a written receipt from the charity, IRS said. Bank records include canceled checks, bank statements, or credit card statements. Personal bank registers and notes are no longer sufficient records, IRS said.

Other tips offered by IRS included:

• Contributions are deductible in the year they are made.

• Taxpayers should check that the organization is qualified.

• Only individuals who itemize their deductions on Schedule A can claim a deduction for charitable contributions.

• Donors should obtain a receipt for property donations from the charity.

• The deduction for a donated motor vehicle, boat, or plane is usually limited to the gross proceeds from its sale.