Deducting Donations

[kbullsexy07]

I took a ton of stuff to the good will this year and using the fair market value chart on there website my donations would be around $2,000 estimating everything on the low end.

My boyfriend and I often donate to a half way house and just recently purchased $100 in bed sheets from Ikea ( have the receipt from both Ikea and center).


Would I be able to write off 2100 in donations or is there a limit? Do I need an appraisal for donations over $500 or does that only apply to property?

Thanks!

[rachellepeters]

No matter what I donate I always use $495 for the deduction. If it's above $500 I believe you have to have an itemized list and more paperwork...I'm sure they have the details on the IRS website

[motherofmolly]

yes there is an amount that if you are above you have to itemize those deductions...ie you need to list them out "who, what, and how much"...

having done taxes, it is best to have a receipt from the place as it lists what, the amount they gave you for it and their tax id number. remember too, it is not necessary fair market value...it should be FMV or what you paid for it...which ever is less

in order to deduct donations, you need to do a long form (itemized deductions) ...most do not do itemized as it is either standard deduction or itemized deductions-which ever is larger. itemized deductions include real estate taxes, work relate expenses (out of pocket), state taxes paid, medical (percentage based on income) and donations

[llamalluv]

You should be able to find your answers in here:

Publication 526 (2009), Charitable Contributions

For AN ITEM valued over $500, you need to have an appraisal. If you are talking about having 101 items worth $5 each, you don't need an appraisal, even though your giving is more than $500. The appraisal is required only for individual items worth more than $500 (for instance, an antique or a piece of art).

When you donated those clothing items to Goodwill, you should have been given a sheet to itemize what you were giving them. Generally, the IRS will accept a list such as:

3 Men's suits
4 Women's blouses
3 Child's pants

etc.

You don't send in those receipts. What you do is on form 8283, you'll put:

Goodwill Industries clothing

But you'll need to hang onto those receipts in case you get audited. The IRS is not looking to audit people who claim $2,000 in charitable donations. (My husband and I donate more than that just to our church, in addition to our other charitable donations.) They are looking for people who are trying to commit fraud by claiming large donation values for worthless things.

[Mothernature]

Molly should have mentioned you must have paid for these items. If these are free after coupon items, it is illegal to deduct them.

Your donation almost must be more than I think 10% of your income. Also, keep in mind, if you claim that itemization on donations, be prepared for an audit. Sorry, but this is the reality.

[kbullsexy07]

Thank you so much!

You should be able to find your answers in here:

Publication 526 (2009), Charitable Contributions

For AN ITEM valued over $500, you need to have an appraisal. If you are talking about having 101 items worth $5 each, you don't need an appraisal, even though your giving is more than $500. The appraisal is required only for individual items worth more than $500 (for instance, an antique or a piece of art).

When you donated those clothing items to Goodwill, you should have been given a sheet to itemize what you were giving them. Generally, the IRS will accept a list such as:

3 Men's suits
4 Women's blouses
3 Child's pants

etc.

You don't send in those receipts. What you do is on form 8283, you'll put:

Goodwill Industries clothing

But you'll need to hang onto those receipts in case you get audited. The IRS is not looking to audit people who claim $2,000 in charitable donations. (My husband and I donate more than that just to our church, in addition to our other charitable donations.) They are looking for people who are trying to commit fraud by claiming large donation values for worthless things.

[tiger_fan3]

Keep in mind that the items you donate must be in "good or better" condition. You can't drop off some non-working appliances or pants with holes all over and write them off.

[llamalluv]

Keep in mind that the items you donate must be in "good or better" condition. You can't drop off some non-working appliances or pants with holes all over and write them off.

What if you bought the pants new with holes in them?

[llamalluv]

Your donation almost must be more than I think 10% of your income.

where are you getting this information from? I am not aware of any such IRS regulation.

There is an upper cap, but there is no minimum.

[motherofmolly]

where are you getting this information from? I am not aware of any such IRS regulation.

There is an upper cap, but there is no minimum.

in order to take deductions for donations, you have to itemize your return. you dont take the standard deduction (single, married, etc) but instead you use the two page form for itemized deductions. on that form is the spot for donations. there is no percentage limit. but you cant itemize unless your itemized figure is more than your single/married deduciton.

oh and if you read mothernature's response she said "i think" . which means she is not for sure...she is guessing