What documentation is typically required when filing donor's tax?

When filing donor's tax, the documentation required typically includes gift tax returns, appraisals, and transaction records. This documentation serves several crucial purposes.

Gift tax returns provide the official record of the gifts that have been transferred, detailing the amounts and recipients. The appraisals are particularly important for understanding the fair market value of non-cash gifts, as they establish the value that will be considered for tax purposes. Transaction records, such as receipts or agreements, help substantiate the gifts made and provide proof of the actual transfers.

Having accurate and complete documentation is essential not only for compliance with tax regulations but also for ensuring that any potential audits can be navigated smoothly. Clear and official records help clarify the donor's intent and the specifics of the transaction, solidifying the legitimacy of the gift.