Spring Cleaning
April 15 has passed, but it’s never too early to start preparing for next year – especially with spring cleaning going on. Many people will be cleaning out their closets and donating non-cash charitable contributions of household items and clothing. Be sure to maintain the proper documentation so you can claim a charitable contribution.
When you make the donation, the charity should give you a receipt with their name and the date of the donation along with a general description of what was donated. You should keep this receipt for your files. Also, keep a list of the donated items and their fair market (or thrift shop) value.
These non-cash charitable donations are deductible if you itemize your deductions on your income tax return. If your non-cash charitable donations for the year total over $500, you will need to fill out Form 8283 and attach it to your return. On this form, list the name and address of the charitable organization, the date of the donation, a general description of what was given, and the fair market value of the items donated.
You can determine the fair market value of your donations by looking at comparable sales (eBay, Craigslist, etc.) or the cost to purchase a similar item at a thrift store. There are also other online resources available such as the guidelines that can be found on both the Salvation Army and the Goodwill Industries websites.
Tax Tip Tuesday is going to take a short break. We will be back May 12th unless major tax legislation passes before then.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein
