NONCASH Charitable Donations –tax info–
We live in a “throw away” society. I personally feel satisfaction when I can donate something of value that can be used by someone else. I usually take between a $1000 to $2500 deduction per year for non-cash donations.
When I was in high school, my friend’s grandpa was the manager of the Ogden Deseret Industries. My friends and I were able to get part-time jobs driving trucks and picking up appliances. That job gave me a first-hand witness of the blessing of this organization in providing work to handicapped people.
Remember, the donations need to be to qualified charities and no deduction is allowed for a charitable contribution of clothing or household items unless the clothing or household item is in good used condition or better. The IRS is authorized by regulation to deny a deduction for any contribution of clothing or a household item that has minimal monetary value, such as used socks and undergarments.
Planning Tip: Most cell phones today can take pictures. Take a picture of all items donated.
Keep the electronic pictures for proof the items were in good or better condition at
the time they were donated.
Recordkeeping Rules for Charitable Contributions
To help substantiate a deduction for the fair market value of used items donated to charity,
make a list of each item donated on a separate sheet of paper along with the following
information.
• Name and address of charity.
• Date items were donated to the charity.
• Description of each item donated.
• Fair market value of each item at the time they were donated (email me and I can send you a guide).
• Date each donated item was originally purchased or acquired.
• Cost or other basis of each item donated.
Ron
ron@the-tax-coach.com
PS Email me if you would like to get a Guide of the Fair Market Value of Donated Items
.
