goodwill tax deduction

[lazysundays]

I put together a whole bunch of clothes to donate to goodwill, and I took it there. The receipt just says 2 bags and one box of clothes.. how does that become tax deductible?

[Sharon]

Before I make a donation to Goodwill I write down every item and an estimated value on a piece of notebook paper. For example:
1 pair jeans $5.00
1 turtleneck sweater, new tags on $7.00

Then I take the slip they give me and staple it to my list and file it away until tax time. There is a law that items donated need to be in good condition and it was actually recommended that I take a picture of items donated, my response was come on get real.

[mwcpa]

Non cash contributions of used clothing (and other property) can be very valuable but in order to get a tax break one needs to follow the rules.

Non cash items must be in "good" or better condition, pictures are helpful, but not required for small gifts like this.

You need to keep a detailed list of what was given away, 2 bags of clothes noted on a slip from Goodwill (or another group) won't do it, what was in the 2 bags is what is needed to be maintained.

Be reasonable with the values, if you bought a pair of jeans for $50 and wore them for 3 years they probably are not worth more than $5.... and if they are ripped or frayed, that is probably not going to be "good" condition (current fashion trends do not define good or better). In some cases an appraisal is needed for non cash gifts.

you can find some good information at the IRS website, try this link at the IRS noted as "Topic 506 - Charitable Contributions" www.irs.gov/taxtopics/tc506.html

Also look at IRS publications 526 (Charitable Contributions) and 561 (Determining the Value of Donated Property) and form 8283 and its instructions.

[TheOtherMe]

Last place I worked we used the values used by the Salvation Army. It's on their website.

[illinicheme]

I use itsdeductible.com to list and value anything I donate to Goodwill.

[lazysundays]

too late now, I dropped it off, and then I tried to remember what was in those boxes. I underestimated the values, and I'm sure I forgot some things, and it's still $100.. oh well, better than no list at all, I guess.

[Savoir Faire-Demogague in NJ]

MWCPA, is on target as usual.
Two yeas ago I donated two bags of clothes to a charity. I listed and described each item, and assigned a nominal value to it.
IE: multi-color stripped casual shirt-$2, etc.

The total donation amounted to $165... I got rid of a lot of stuff which was the main objective.

[mwcpa]

good point savior.... "getting rid" of stuff that you no longer need (or in my case, may no longer fit) is a good objective.... to be able to give these to individuals that could use them should give you good karma.... and getting any tax break, no matter how small or big, is merely some gravy.....

if a tax break is the sole motivation for doing a good deed.... yeshhh (not saying that posters here are doing that, I just see it in my practice with the one bag of clothing is worth $500 garbage or the what's the minimum I can get away with question, while some will cheat and note an improper amount, my reputation, ethical standing, license and track record is worth more than the $50 in tax savings for you) ..... I cannot count the times I see a homeless person on the street asking for food.... while I won't give them cash directly I have no problem taking them to a deli or bodega and get them a cup of coffee, sandwich, whatever.... no tax break, but hopefully good karma....

lazy.... while you did not maximize the small tax break you probably helped out someone in need.... and in these days of too much self centered actions (look at Congress these days and the debate over the debt ceiling) you should feel good about your action....

okay... off the soapbox for me.... should keep this on taxes....

[TheOtherMe]

I used to hear "add the automatic $500 non cash deduction" to my charity. I would tell people there is no such thing.

[cronewitch]

I am cleaning out my kitchen and have many boxes of leftover dish and glassware items. I could have a yard sale but they are boring to me so I will either leave them out to be taken or leave on the porch and call a charity to come get them maybe freecycle. I will probably choose charity for the deduction. I should go find them some clothing and coats too so they get more boxes and I get a bigger deduction. The empty space leftover is worth the trouble of boxing it up.