For the first time thus year we are use the stuff we have donated thru out the year as a tax write off. The problem is i don't Know how to go about pricing it. So I'm wondering if there is à Business or Website any of you Know of that could help with the pricing. Any other useful Info i Need to Know to get Started? We always do our own taxes so going to an accountant is out.
I worked for an accountant years ago. In order to use these as deductions you need to have a receit from each charity. The value should be on the receit.
the IRS website has a guide to pricing of items that are donated. Good luck!
The IRS website has a guide to pricing of items that are donated. And In order to use these as deductions you need to have a 'reciept' slip from each charity.
But I have to diagree with a previous poster. The 'reciepts' do not list a value on them. They are just a reciept to show the charity acknowledges that you donated something. It does not list what you donated.
As long as you have a detailed list of the items you donated you can deduct them. If you use TurboTax to do your taxes they have a software called It's Deductible. You go on the website and enter the items you donated and there are values given for the quality of the goods.
The accountant that does our taxes told us to estimate $25 per donation bag (we use the bags that come in the mail for the red cross, lupus, etc) If you have larger items like area rugs, small appliances; you can estimate $10 each if they are in good working/useable condition. Whenever we donate, the person who picks up the items leaves us an estimation sheet in our door that we keep as a record. Hope this helps.
Ther is a guideline on a website. I don't remember the website though. Maybe you can do a search?
If you use Turbo Tax, it automatically prices the items for you.
If you go thru Goodwill they have a guideline sheet. I think you just have to ask for it.
Here is a listing of values that the Salvation Army uses:
http://www.satruck.com/ValueGuide.aspx
However, as a tax preparer, I must warn you that the IRS now takes donated items values very seriously. If you did not record each item donated and take pictures, you will have problems should you get audited (I am also assuming that your value will be greater than $499 of donated items). Remember all items must have been in "good used condition or better."
Here is an article that talks about how to properly record donated items for purposes of tax deductions.
http://www.moneybluebook.com/how-to-value-your-clothing-d...
Good luck :)
I think my husband got a price list from our turbo tax software. We fill up boxes and make a list of the items in each box and save it as a tax record along with the receipt from the charity we donate too.
As another person had mentioned we do not donate more than $500 per charity to avoid an audit flag so we find a variety of charities to give to throughout the year.
itsdeductibleonline.com
this is so easy to use and I think you can import it to TurboTax
The value of the tax attribute is just the fair market value of the item(s) donated. The IRS will accept garage sale, thrift store value, Craigslist, etc. for values. So, just make a list of all of th itmes donated and assign a value to each item. Be sure to keep all of your donation receipts. Add it up and put that total value on Form 8283 if the total value of all non-cash donations exceeds $500. If the total is under $500, put the amount directly on your Schedule A. Here is a link to the Instructions for Form 8283: http://www.irs.gov/pub/irs-pdf/i8283.pdf
I know you said using an accountant is out, but keep in mind that the more complex your tax return is, the more likely it is that you will make errors and/or miss deductions that could significantly impact your tax liability. Often times the cost of a professional is far less than the errors that are avoided by using a professional. Disclosure: I am biased because I am a tax attorney, so take it for whatever it's worth. But seriously, I have found and corrected thousands of dollars of mistakes for people who self-prepare or use the Turbo Tax or HR Block software.
Good luck! R.
Remember unless you have the receipt for every drop off you have done and photo's of each item or box of items donated I wouldn't risk deducting it. And if you go over $500 worth of donations I would make sure you have the proof. Otherwise it just isn't worth the audit. Look at it in the bright side of things that you have helped a mother or person get the item they need for a reasonable price!!
