How much donated clothing can we write off?

Mazeroth

If my wife and I are going to itemize our taxes for next year how much can we deduct for articles such as clothing and maybe other household items? The reason I ask is my wife has so much f*cking clothing and other **** that it's getting out of hand. I'm going to make a proposal to her that we should donate it to others less fortunate and that we can even ease our tax burden by doing so.

The place we usually take stuff has a trailer outside with a guy manning it. He gives out a form that's blank which allows you to write in the total amount donated. Is this legitimate to use when doing our taxes? Also, how do you determine their value? Giving a rough number in my head I bet we could get rid of 40-50 articles of clothing that are high quality in near-mint condition along with a boatload of other crap. New value is probably in the neighborhood of $3k.

Thanks.

madmax

I think GoodWill GW has a listing on their website that gives average prices.
madmax

madmax

Here you go.http://www.goodwill.org/c/document_library/get_file?folderId=102123&name=DLFE-2302.pdf
madmax

candyliquor35m

I know you can donate anything except what you're wearing at the time for obvious reasons.

madmax

Some GW's will not take CRT monitors or computers of less than a particular performance range.
madmax

polrbehr

Be careful... I have heard that Big Brother is really looking into large personal deductions
starting this year, including donations to charity. Lots of red flags going up for people trying to offset high energy costs, maybe? (Over $6K in gas/oil expenses here:eek:)

At least run it past a CPA before you file.

shack

The IRS rules have changed some since last year:

http://www.irs.gov/pub/irs-pdf/p526.pdf

THIS is where the answers can be found.

J_Kennedy

It's scary to ask a question like that on a forum, like this. Way too many variables although, this kind of deduction isn't a big deal. Having to ask, is.

If you use something like TurboTax, it'll walk you through. It's likely cheaper than a CPA since you don't have one now.

And obviously, shack posted the best advise, and that's to go to the source.

Mazeroth

shack wrote: »

The IRS rules have changed some since last year:

http://www.irs.gov/pub/irs-pdf/p526.pdf

THIS is where the answers can be found.

Exactly what I was looking for. Thanks.

polrbehr

shack wrote: »

The IRS rules have changed some since last year:

http://www.irs.gov/pub/irs-pdf/p526.pdf

THIS is where the answers can be found.

There are also more things going on than what's in the "official" publications. There are a lot of grey areas not covered in those books they put out. And good luck "going to the source".

A consultation with a CPA should not cost more than $50 - $75, worth every penny, especially if, as Mazeroth states, he'll be filling out the forms for the donations himself, as well as itemizing with a Sched. A for the first time.

But what the hay, those IRS books are free. Do whatever feels right. My .02 (Hey, can I write that off?)

shack

polrbehr wrote:

There are also more things going on than what's in the "official" publications. There are a lot of grey areas not covered in those books they put out. And good luck "going to the source".

A consultation with a CPA should not cost more than $50 - $75, worth every penny, especially if, as Mazeroth states, he'll be filling out the forms for the donations himself, as well as itemizing with a Sched. A for the first time.

But what the hay, those IRS books are free. Do whatever feels right. My .02 (Hey, can I write that off?)

Where the hell do you think the CPAs get their info. :rolleyes: CPAs typically deal with the more complicated issues. Small non-cash donations and standard itemized deductions are not something a CPA needs to get involved in unless the taxpayer is totally incompetent.

The gray areas are just that...and for minor amounts are not worth the hassle of a potenital audit or the penalties and interest if they are disallowed.

polrbehr

Shack, I'm not looking to get into a debate with you, nor am I suggesting that your advice is wrong. You seem to know what you're doing regarding taxes (CPA, maybe? ); I am simply advocating the use of professional help for someone who has not gone down this road before, at least for the first time. I did the same thing 10 years ago, when I first started my biz. I figured all of my taxes, filled out all the paperwork, then brought the whole pile to a CPA, and asked for his opinion on whether I did it correctly or not. I've been handling things on my own ever since.
Guess I should've listened to the voice in my head telling me not to post here .

shack

Not a problem.

Filing a business tax return is a whole different animal than a basic personal return and SHOULD have professional advice. I took exception to the advice that the IRS publications don't tell the whole story and there are gray areas one should consider. Those are the things that get average taxpayers in trouble. They listen to someone telling them they should do this or do that and end up paying a hefty price.

Again, for someone of average education and ability and who has only W-2 income, interest and dividends, they should be able to complete the 1040 form and its schedules with no professional help by reading the IRS publications and following the guidelines. At the very worst download the Basic Turbo Tax for $20 ±. Places like H&R and Jackson Hewitt are a joke IMO. Half of those guys don't know a standard deduction from a capital gain. A total waste of money. Most good tax CPAs will hit you up for more than $50-$75 and they ARE WORTH IT if you have anything out of the ordinary.

Unfortunately I was an accounting major who had the good sense to change my major to finance. My father was a practicing CPA for 50 years who had certification to represent clients in tax court.

Strong Bad

I've had a CPA do my taxes for a number of years, especially when I started a side business as a DJ and Photographer. They've been extremely helpful and worth every penny when it comes to the business end of it and keeping things straight up with the IRS code.

There's no way in hell I would have been able to do my tax return.

shack

Strong Bad wrote: »

I've had a CPA do my taxes for a number of years, especially when I started a side business as a DJ and Photographer. They've been extremely helpful and worth every penny when it comes to the business end of it and keeping things straight up with the IRS code.
There's no way in hell I would have been able to do my tax return.

I agree with that...