Charitable donations ... non-cash

[taximomfor4]

Every year, I waaaay underestimate (according to Its Deductible) the stuff I donate to Purple Heart, Salvation Army, Birthright, etc. because I don't know how to PROVE what I donated. (Like I try to only type in some of the items, so I never EVER get to $1500. I don't want some dude auditing my tax return, and deciding I plumped it up HOWEVER -- we have 4 kids. We donate a LOT LOT LOT of kids clothes, shoes, coats, toys, etc...and MIL often gives us household things, so we have lots of extras to donate.

Anyway, I always take a picture of the stuff laid out on the floor, and type up a list. I save the list on the computer, plus save the receipt (which doesn't list the stuff) that the driver leaves. I just think people could list whatever they want, whether they donated it or not...and I dont' want an auditor to think I did that.

So what's the best way to keep track of what I donate, so I can feel like I'm protecting myself better?? It won't help me this year, because I filed today and already only deducted about half of my list of items...but it'll help me for next year. I want to claim EVERYTHING I donate, up to my limit by law, of course.

 

[Pakey]

I keep a list of all items donated, the year they were purchased, and the purchase price. My tax accountant then takes that list and calculates the donation at a penny on the dollar of original cost. He said anything higher than a penny on the dollar could draw a flag and I would perhaps have to prove the value at the time of donation if I were to be audited. So last year I donated items with an original cost of $4000 and my tax accountant took a $40 deduction for it. You cannot deduct what they cost because they are not worth that much any longer.

I'm an accountant but do not specialize in taxes. I'm very conservative by nature and padding a contribution deduction is not worth it IMO.

 

[taximomfor4]

I keep a list of all items donated, the year they were purchased, and the purchase price. My tax accountant then takes that list and calculates the donation at a penny on the dollar of original cost. He said anything higher than a penny on the dollar could draw a flag and I would perhaps have to prove the value at the time of donation if I were to be audited. So last year I donated items with an original cost of $4000 and my tax accountant took a $40 deduction for it. You cannot deduct what they cost because they are not worth that much any longer.

I'm an accountant but do not specialize in taxes. I'm very conservative by nature and padding a contribution deduction is not worth it IMO.

That was why I was so excited when turbotax let me use ItsDeductible for free. I didn't have to think so hard, lol. So based on what your accountant is advising you to deduct, ItsDeductible pads the value? (Like a child's winter coat in excellent condition is valued at $6, in average condition $4) THose aren't the actual numbers on that program, but I know it's close. I didn't choose excellent condition for ANYTHING, for fear that it would be valued too high -- even things new with tags, I valued at average to get the lower value.

Hmmmm. So technically, my list should be fine anyway, what else could I do short of taking a picture of the pick up man holding up each item in each box 1 at a time, lol.

 

[savannahcat]

I've been using It's Deductible for several years now to value my charitable donations. I keep a list attached to my receipt for each donation. Last year, we cleaned out our basement and donated a ton of stuff to goodwill, including about 400 music CDs. We had quite a sizable deduction, but no audit.

I don't really worry about it. In the grand scheme of things, my charitable deductions are peanuts to the IRS.