Furniture donation to Goodwill?

[ripvanwinkle]

Now that I got a new job and a 25% pay increase, I'm thinking of getting some new furniture. I think all 5 old stuff (2 recliners, Couch & loveseat, dining table 6 chairs) would be worth about $300 - $500 if I donate. Since I'm single and no kids or pets it's all in pretty good shape.

My question is this. I itemize. I have a mortgage. How much deduction will I get? Full $300 - $500 or a percentage of it?

[ken a.k.a OMK]

Goodwill doesn't take upholstered furniture.

[ripvanwinkle]

I should have said any charity that has a tax deduction.

[ՏՇԾԵԵʅՏɧ_LԹՏՏʅҼ]

It would probably be easier to place an ad in the local newspaper and sell the pieces & pocket the cash.

A lot of charities don't take large pieces of furniture. Some places, like "Hands Up" type charities, or Women's Emergency Shelters accept furniture donations - and then re-home those items to families or women that are starting over and setting up a new residence after fleeing an abusive one. I'm not sure if they'd give you a receipt for tax deduction or not - I guess it's up to each charity as to what they accept and what paperwork for a tax deduction they might give you.

The best way to find out, is to phone around. Salvation Army also accepts some furniture pieces.

[ripvanwinkle]

I don't want to do Craigslist etc. I'll drop it off at the donation center. But back to my question - Is it a dollar for dollar deduction or just a percentage off my taxes?

[Apple]

You would get a percentage, depending on your tax bracket:

From www.charitynavigator.org/index.cfm?bay=content.view&cpid=31#.VAZzMmNIMWs

A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize deductions.
If the gifts are deductible, the actual cost of the donation is reduced by your tax savings. For example, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings). As your income tax bracket increases, the real cost of your charitable gift decreases, making contributions more attractive for those in higher brackets. The actual cost to a person in the lowest bracket, 15%, for a $100 contribution is $85. For a person in the highest bracket, 35%, the actual cost is only $65. Not only can the wealthy afford to give more, but they receive a larger reward for giving.
...
Rules exist for non-cash donations.
If you contribute property owned for more than one year, the value of the deduction is normally equal to the property's fair market value. You have an advantage when you contribute appreciated property because you get a deduction for the full fair market value of the property. You are not taxed on any of the appreciation, so, in effect, you receive a deduction for an amount that you never reported as income.

You should clearly contribute, rather than throw out, old clothes, furniture and equipment that you no longer use. However, bear in mind the condition of your donated goods. The IRS only permits deductions for donations of clothing and household items that are in "good condition or better."

If you bring $1,000 in clothes or furniture to Goodwill or the Salvation Army, make sure that you get a receipt. Never throw such contributions into a bin where no receipt is available. If you are in the 25% bracket, that receipt may be worth $250 in tax savings to you. And remember that the IRS requires a qualified appraisal to be submitted with your tax return if you donate any single clothing or household item that is not in good used condition or better, and for which you deducted more than $500.

[Apple]

Otherwise, I'd donate my house!

[ripvanwinkle]

Hmm.. that stinks. What's the incentive then? Just to be nice? Easier to just put it on the curb.

[resolution]

The Salvation Army takes upholstered furniture if it is in good condition. They will reject anything in poor condition.  When I moved 5 years ago they brought a truck out to my house and loaded it with the furniture I was donating. They gave me a receipt for the goods that I told them in advance (through the web site) I was donating.

They have a valuation guide here to tell you how much you can claim on taxes. satruck.org/donation-value-guide

Turbo tax also has a built in valuation for donations, and the turbo tax numbers will give you a larger deduction than the Salvation Army numbers.

[bean29]

Well actually, turbo tax has a feature called "it's deductible" to help you figure out the value of what you donated. They give you $10-12 for a pair of jeans. Sell at a rummage sale- lucky to get $1.00. Donate, value 12, results in $4.00 tax savings. I'll happily take that deal. My DB has the rummage sale, then donates what's left. Either way-works.

[Apple]

Sept 2, 2014 22:00:44 GMT -5 bean29 said:

Well actually, turbo tax has a feature called "it's deductible" to help you figure out the value of what you donated. They give you $10-12 for a pair of jeans. Sell at a rummage sale- lucky to get $1.00. Donate, value 12, results in $4.00 tax savings. I'll happily take that deal. My DB has the rummage sale, then donates what's left. Either way-works.

HR Block also does this now.  They valued used items way above the value I had put on them.  I got to deduct quite a bit more than I expected.

[Bonny]

I'm posting a link to the IRS pub 526 regarding charitable donations. You'll want to scroll down to p19 to "non-cash" documentation. Some of the prior information posted from non-IRS sites can be confusing.

www.irs.gov/uac/Publication-526,-Charitable-Contributions-1

[Deleted]

Sept 2, 2014 21:19:29 GMT -5 ripvanwinkle said:

Hmm.. that stinks. What's the incentive then? Just to be nice? Easier to just put it on the curb.

what's the incentive to donate?  hoping that someone else can get some use out of things you no longer need or want.

[ՏՇԾԵԵʅՏɧ_LԹՏՏʅҼ]

what's the incentive to donate? hoping that someone else can get some use out of things you no longer need or want.

And adding to that, how about hoping that someone else IN NEED can get some use out of things you no longer want?

Pay it Forward.

[billisonboard]

Sept 2, 2014 21:19:29 GMT -5 ripvanwinkle said:

Hmm.. that stinks. What's the incentive then? Just to be nice? Easier to just put it on the curb.

Or it at the bus stop.

[mwcpa]

The value of a donation outside of the tax benefit is that you would be giving an anonymous person who was in a worse position than you something you do not want and they need.... I know every year that my wife and I chose charities we will support we try to see who will do the most good the tax break while nice is not the motivation.