Clothing Values For Tax Deductions
How do you best ensure donated clothing receives high value for tax purposes?
I’m reading this thing and it says for example that shirts can be valued anywhere from $2-8 for the purpose of tax deduction.
Do you have to wash and iron the clothes to make them look like new before donating?
I have really good stuff. Most of my stuff is Banana Republic, Armani, J Crew, Gap, Express. It looks cruddy because it’s all wrinkled and dusty.
What’s the best way to ensure my donated goods are valued at a good price?
It will only matter if you get audited. If the IRS starts checking your deductions, they’ll see the receipt you got from Goodwill – which doesn’t itemize or provide value – and they’ll challenge the value you placed on the goods.
So when you donate, itemize for yourself on the receipt “6 Armani shirts, good condition, $48″ etc. If your deductions vs. your income are going to be way out of line this year, take digital photos and store them.
You don’t have to wash & iron the clothes, if they are dirty or sweat-stained the charity is going to send them to a scraphouse no matter the brand. If you care about the charity and not just about your tax deduction, wash them and hang them decently on clotheshangers.
IRS Rules for Charitable Giving 2009
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TurboTax- ItsDeductible $19.95 … |
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MONEY For Your Used Clothing $25.00 “MONEY – For Your Used Clothing” provides the taxpayer with certified valuations for over 700 clothing and household items commonly donated to charity – and all in accordance with the New IRS guidelines. If you itemize your deductions on your annual income tax return, you will save hundreds of dollars by using this book! This book explains six simple steps for documenting donations and tells how t… |
