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It’s true; you can save up to $1,750 in taxes by
donating used clothing and household items! The
catch is you need to have the proper documentation
to deduct items commonly donated to charitable
organizations such as the Salvation Army and
Goodwill Industries. You will also need to itemize
your deductions on Schedule A for your 1040
Taxpayers have struggled to prove the fair market
value of non-cash donations such as clothing and
household items. As we pointed out in our last FOCUS
e-newsletter, the IRS is scrutinizing more returns
and this is a sensitive area. To sustain a non-cash
contribution in the event of an examination you will
need to prove 1) that you actually donated each
item, 2) the condition of each item donated and 3)
the fair market value at the time of donation. The
first two criteria can be relatively easily
substantiated by digital pictures and a detailed
receipt from the charity.
The
final criteria, fair market value, is usually the
most difficult to substantiate but we have found a
potential solution for you.
CharityDeductions.com provides fair market
values for commonly donated items allowing you to
substantiate and possibly increase your itemized
charitable deductions and reduce your tax liability.
CharityDeductions.com complies with IRS valuation
guidelines by using IRS approved guidelines on how
to determine the fair market value of a donated
item. This website is easy to use and costs $24.95
for one year and $19.95 per year for multiple years.
Here are a few highlights from CharityDeductions.com
Other free sites helpful in
determining the fair market value of non-cash
donations
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How often should I review my financial plan? |
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A look at the need for financial
planning and when you should
consider an update.
...click here
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QuickBooks Tip: Do I need to enter every customer's
name? |
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A new twist on using customer names to track
important information for later use.
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