Record-keeping/valuation for donations?

[AmyAnne]

H and I are deciding whether we want to have a garage sale or just donate the stuff we are ready to get out of our house. H (who doesn't like garage sales in the first place) says to just donate it. I am feeling guilty about the money (to be honest, most of the excess stuff is mine, between clothing/accessories and craft supplies). I know that if we keep track of each item we donate, that we can list the value as a charitable donation on our taxes. I also know that there are programs out there that will tell you the value of various items (hopefully one works with TurboTax). What I'm wondering is, how specific is the valuation (and how specific does my record-keeping need to be)? For example, do I just keep track of "one leather purse" or "one Nine West leather purse" (or maybe just "one purse")?

As you can tell, we we have never deducted donations of stuff before (we have donated a lot, mostly when the kids were growing up, but just never bothered to keep track of it all). So any and all advice about this is appreciated.

 

[kymom99]

I don't keep track either but goodwill for example has a general list of items and their values for tax purposes. You do not need to specify brands. Just things like 5 pairs of men's jeans for example.

 

[AquamarineSteph]

You can always use a generic list to value a large number of donated items; however, if I were going to write off one item at a higher value because it's a name brand, etc., I'd list it separately in my records and maybe even take a photo of the piles of items to be donated. That way in the event you have to answer any questions at a later date about your charitable donations, you can show some documentation of what you donated and how you listed it.

 

[supersnoop]

If you claim more than $500 in donations, you need to keep pretty detailed records. ItsDeductible rates items as "low,""medium," and "high" quality. I take a photo of each item I donate, burn then to a cd, and keep it in a file with a copy of my tax return just in case if an audit.

 

[kellia]

If you claim more than $500 in donations, you need to keep pretty detailed records. ItsDeductible rates items as "low,""medium," and "high" quality. I take a photo of each item I donate, burn then to a cd, and keep it in a file with a copy of my tax return just in case if an audit.

Is that $500/year?

 

[angierae]

Is that $500/year?

Yes. I don't think you need receipts/records for under $500, but over $500 you do.

 

[tvguy]

If you claim more than $500 in donations, you need to keep pretty detailed records. ItsDeductible rates items as "low,""medium," and "high" quality. I take a photo of each item I donate, burn then to a cd, and keep it in a file with a copy of my tax return just in case if an audit.

Also, be careful to understand what the real current value of the item you are donating is.
Looking at Goodwill online, the "Citizens of Humanity" women's "Emannuelle" Slim Bootcut Jeans that Nordstrom is selling new for $208, Goodwill is selling online for $11.99, and the $39 Levi's are selling for 50 cents.

 

[gottalovepluto]

This might be unnecessary but just in case....

So you know you're doing itemized deductions vs taking the standard deduction for 2016? If you're taking the standard deduction don't waste your time listing that stuff out. More info: https://www.hrblock.com/get-answers...uctions/standard-vs-itemized-deductions-10729

 

[AmyAnne]

Yes. I don't think you need receipts/records for under $500, but over $500 you do.

This is referring to receipts from Goodwill or receipts for the things donated to Goodwill?

Also, be careful to understand what the real current value of the item you are donating is.
Looking at Goodwill online, the "Citizens of Humanity" women's "Emannuelle" Slim Bootcut Jeans that Nordstrom is selling new for $208, Goodwill is selling online for $11.99, and the $39 Levi's are selling for 50 cents.

I was hoping that this is what It'sDeductible (or whatever the program is) would calculate.

This might be unnecessary but just in case....

So you know you're doing itemized deductions vs taking the standard deduction for 2016? If you're taking the standard deduction don't waste your time listing that stuff out. More info: https://www.hrblock.com/get-answers...uctions/standard-vs-itemized-deductions-10729

This is a good point. Also, the $500 (or whatever the amount) is a deduction not a credit, so the final bottom-line value of the donation is multiplied by our tax rate. For example, if our tax rate is 20%, then the value of the $500 donation would be $100. Correct?

 

[kymom99]

As far as I know, good will etc. will not value your items for you. They will give you assigned receipt and a list of values for common items. There is a deductible of $250 for singles and $500 for couples that you can claim without any proof. If you want to claim more you have to have proof.

 

[gottalovepluto]

Also, the $500 (or whatever the amount) is a deduction not a credit, so the final bottom-line value of the donation is multiplied by our tax rate. For example, if our tax rate is 20%, then the value of the $500 donation would be $100. Correct?

Yes, that's how I read the math as well. The above example would ultimately result in $100 off your tax bill.

 

[Sadie22]

Keep the records as you make the donations. Don't wait until you're doing your return and realize you can itemize but you don't have the records you need.

 

[amcnj]

My understanding of the process is, if the contribution is $250 or more, you should get and keep some sort of receipt from the entity you donated to. If your deduction is over $500, you need to fill out section A of form 8283, showing the name of entity you donated to, items donated, date of donation, when you acquired items donated and how, your cost of the items and the fair market value and method you used to determine value. If I donate to a place like Goodwill, I take a quick walk through to see the typical prices they are selling items for. If your donation is over $5000, then you need to have items appraised and fill out section B of form 8283. As suggested above, I also take photos of the items being donated, not an individual picture of each, but several shots of all items together. I also make a list (6 pairs dress pants, 3 pairs jeans, 2 unused pairs dress shoes, etc) which together with the photos, I keep with my return.

 

[pixxi]

I use Turbo tax and you have the option of itemizing everything and they have categories and then idea of what the items are worth based on their condition. I usually take photos of the donation items, I tried to make itemized lists but we donate a lot with 6 people in the family.

 

[AnnaS]

I was going to post the same as above, if you itemize, great. If you do the standard deduction - I would not even worry about the amount.

 

[Minnesota!]

I write down what is in each bag, and then I staple that to my donation receipt from the donation place. Throw it in my taxes folder. Come time to file, I just enter it all and take whatever value the website assigns to it.

 

[jedijill]

Itsdeductible.com is my favorite! It feeds into Turbo Tax at taxtime.

Jill in CO