System and method for tracking charitable deductions

• US 8,200,553 B1
• Filed: 05/27/2008
• Issued: 06/12/2012
• Est. Priority Date: 03/13/2001
• Status: Active Grant

• Current Assignee: Intuit, Inc.
• Original Assignee: Intuit, Inc.
• Inventors: Hermreck, Scott A., Walter, Craig B., Whitten, Gordon D. Jr., Rademacher, Carey G.
• Primary Examiner(s): Zeender, F.
• Assistant Examiner(s): Buchanan, Christopher
• Application Number:
  US12/127,622
• Time in Patent Office: 1,477 Days
• Field of Search: None
• US Class Current: 705/30
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A system and method for recording and tracking charitable donations over a period of one or more years, and for determining the tax consequence associated with such donations based upon taxing authority guidelines applicable to the time period in which such donations were made. Additionally, a method implemented by software for tracking charitable donations over a period of years whereby a user is prompted to select a donation and a year in which the donation was made for a memory. The software retrieves a tax deduction valuation associated with that donation and stores the donation and value in the memory in association with each other. Another aspect is directed to a system for determining the tax deduction value of charitable donations whereby a partner server electronically captures sales data of items and sends the sales data to a system server that stores such data in memory.

Claims

1. A computer implemented method for tracking a charitable donation, comprising:

storing, in a memory, data indicative of a plurality of donations and a tax deductible valuation associated with each of the plurality of donations for a current tax year and a previous tax year;

prompting a user to select a donation of the plurality of donations that has been charitably donated;

generating, using a computer processor, a prompt to the user requesting a tax year in which the donation was donated and a condition of the donation, wherein the condition indicates a physical appearance of the donation on a day the donation was donated; and

the donation is a physical item

prompting the user using the prompt to indicate a tax year in which the donation was donated and the condition of the donation;

retrieving, from the memory, the tax deductible valuation associated with the donation for the tax year indicated based on the condition, the tax year, and the donation; and

storing the donation, the tax year indicated, and the tax deductible valuation in the memory.

2. The computer implemented method of claim 1, wherein the donation is a non-cash item donation and the method further comprises:

receiving sales data periodically from a partner server, wherein the partner server is programmed to electronically collect sales data of items sold; and

calculating the tax deductible valuation for the donation based on the sales data.

3. The computer implemented method of claim 2, wherein the sales data is received via a communications network.

4. The computer implemented method of claim 1, further comprising:

determining that a total amount of a plurality of non-cash item charitable donations requires filling out a IRS Non-cash Charitable Contributions form; and

notifying the user to fill out the IRS Non-cash Charitable Contributions form.

5. The computer implemented method of claim 1, further comprising updating the memory with a current set of data indicative of the donation and a current tax deductible valuation associated with the donation.

6. The computer implemented method of claim 1, further comprising presenting the user with an informative data item based upon the donation.

7. The computer implemented method of claim 6, wherein the informative data item comprises a marketing information item and a plurality of tax tips.

8. The computer implemented method of claim 4, further comprising:

importing a non-cash item charitable donation into the IRS Non-cash Charitable Contributions form.

9. The computer implemented method of claim 2, further comprising:

updating the memory with a data item indicative of the non-cash item and a current tax deductible valuation associated with the non-cash item;

replacing the tax deductible valuation associated with the non-cash item with the current tax deductible valuation; and

storing the current tax deductible valuation and the selected non-cash item in the memory.

10. The computer implemented method of claim 1, wherein the tax deductible valuation for the donated item is determined by accessing historical sales data of items identical to the donated item.

11. The computer implemented method of claim 1, further comprising:

receiving, from a user, an identification of a category of an item that was donated to a charitable organization at a previous time;

receiving, from the user, a selection of a condition of the item, wherein the condition indicates a state of the item at the previous time;

identifying, using the category and a processor, a tax deduction regulation relating to the item;

determining, using the processor, a tax deductible value of the item based on the tax deduction regulation, the category, and the previous condition; and

populating, for the user, a tax form with the item and the tax deductible value of the item.

12. A computer implemented method for tracking a charitable donation, comprising:

storing, in a memory, a first set of data indicative of a plurality of donations and a tax deductible value associated with the plurality of donations for a previous tax year;

generating, using a computer processor, a prompt to the user requesting a donation that has been charitably donated in a current tax and a condition of the donation, wherein the condition indicates a physical appearance of the donation on a day the donation was donated; and

the donation is a physical item

prompting a user using the prompt to select a donation that has been charitably donated in a current tax year and the condition of the donation to obtain a selected donation;

storing the selected donation, the condition, and the current tax year in the memory; and

updating the memory with a second set of data indicative of a second plurality of donations and a second tax deductible value associated with the second plurality of donations for the current tax year, wherein the updating comprises;

retrieving from the memory the selected donation, wherein the selected donation was donated in the current year;

applying, by using the condition, the current tax year, and the selected donation a current year tax deductible value to the selected donation; and

storing the current year tax deductible value, the selected donation, and the current year in the memory.

13. The computer implemented method of claim 12, further comprising:

prompting the user to enter information sufficient to determine an applicable tax rate;

calculating a total of a plurality of current year tax deductible values;

calculating a total amount of tax savings based on the plurality of tax deductible values and the applicable tax rate of the year; and

displaying the total amount of tax savings.

14. The computer implemented method of claim 12, further comprising:

updating the memory with changes to taxing authority guidelines.

15. The computer implemented method of claim 12, further comprising:

providing an informative data item to the user depending upon input of the user.

16. The computer implemented method of claim 15, wherein the informative data item includes marketing information.

17. A system for tracking a charitable donation, comprising:

a processor;

a memory; and

a donations application executing on the processor and configured to;

store, in the memory, a data indicative of a plurality of donations and a tax deductible valuation associated with each of the plurality of donations for a current tax year and a previous tax year;

prompt a user to select a donation of the plurality of donations that has been charitably donated;

prompt the user to indicate a tax year in which the donation was donated and a condition of the donation, wherein the condition indicates a physical appearance of the donation on a day the donation was donated; and

the donation is a physical item

retrieve, from the memory, the tax deductible valuation associated with the donation for the tax year indicated based on the condition, the tax year, and the donation; and

store the donation, the tax year indicated, and the tax deductible valuation in the memory.

18. The system of claim 17, further comprising:

a partner server comprising a data source where items are sold, wherein the partner server is programmed to electronically capture a plurality of sales data items for a plurality of items sold at the data source; and

a system server including a memory for storing the plurality of sales data items, wherein the system server is programmed to;

periodically receive the plurality of sales data items from the partner server;

store the plurality of sales data items in the memory; and

calculate a tax deductible valuation for the plurality of items sold based on the plurality of sales data items.

19. The system of claim 18, wherein the plurality of sales data items each comprise an item description, a date of sale, and an amount of sale.

20. The system of claim 18, wherein the data source is an internet auction web site.

21. The system of claim 18, wherein the data source is a retail shop that sells a plurality of used goods.

22. The system of claim 18, wherein the plurality of sales data items is electronically captured during a plurality of sales transactions.

23. The system of claim 18, wherein the system server is accessible by a plurality of users via a communications network, and wherein the system server is programmed to provide a search engine that allows a user to search the memory to locate a sales data item of the plurality of sales data items that has been charitably donated.

24. The system of claim 18, wherein the system server is further programmed to prompt a user to:

select an item of the plurality of items sold that the user has charitably donated;

retrieve the tax deductible valuation for the selected item; and

store the tax deductible valuation and the selected item in the memory.

25. The system of claim 18, wherein the system server is further programmed to create an export file containing information pertaining to a plurality of charitable donations to be imported into an electronic tax preparation application.

26. The system of claim 18,

wherein the partner server is configured to receive, over a communication network and from an on-line marketplace selling used items, the plurality of sales data items of the used items, wherein the plurality of sales data items comprises a sales price of an item and an item description;

and wherein the system further comprises;

a central server configured to;

determine a tax deductible valuation associated with the used items based on aggregate sales data of the used items,

receive a user selection of a donated item and a tax year in which a donation of the donated item was made,

retrieve a tax deductible valuation associated with the selected donated item for the tax year, and

provide the tax deductible valuation associated with the selected donated item to an income tax preparation application.