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fartness
computersoc dot com
Premium
join:2003-03-25
Look Outside

donating clothes

I have 6 big garbage bags full of clothes to donate for a tax writeoff since I itemize. I live in NY if it matters. Is there a limit on the dollar amount of clothes I should donate per trip or per year? I heard if its under $500 I might not get audited or there's some other form I need to fill out. Is it better to split up the days or places I go to? Most of the clothes are decent still, just I have too many or don't wear some of the stuff anymore. Trying to clean up the house a bit. I also have 4 or 5 computers to donate too that are 5-8 years old. Am I better off donating them for a writeoff or parting them out on ebay?


Hayward
K A R - 1 2 0 C
Premium
join:2000-07-13
Key West, FL
kudos:1
Yes is you have a big quantity, and you have multiple organizations, like Salvation Army, Goodwill, and others in the same area, better to spread it out rather than one big dump to one place....

Also keep in mind don't try and claim what they cost you, but what they will likely be sold for or at least something reasonable between.
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fartness
computersoc dot com
Premium
join:2003-03-25
Look Outside
What's the extra IRS form if I give over $500 or something like that? Should I only do $500 per store so I don't have to fill out the form? How will that work with my taxes if I have 3 different $400 donations for example? Not sure if I should split them up over tax years either.


Hayward
K A R - 1 2 0 C
Premium
join:2000-07-13
Key West, FL
kudos:1

4 edits
Not sure of the form....

But just get receipts of donation from each place, and while not itemized rough quantity(25 pcs etc), and again be reasonable about your valuation. Its realistic resale value not what you paid for it. At the same time it could be more in the range of what a consignment store might sell it for, vs the couple of bucks SA and GW do, but again not what you paid for it.

I forget if a form is needed for multiple donations totaling over the limit, but I think its single donations over the $500.

But again that is what the IRS website is for.
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fartness
computersoc dot com
Premium
join:2003-03-25
Look Outside
I looked at a form from Salvation Army or one of the places, and it gives an estimate for what they'd sell it for (therefore the amount I'd claim).


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
reply to fartness
The IRS website has all of the info you need. Same info in Turbo Tax and other tax software. It will tell you the limits without needing an itemized receipt.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


Cabal
Premium
join:2007-01-21

1 recommendation

reply to fartness
Actually, it's over $250 that you need at least a receipt.

»www.irs.gov/taxtopics/tc506.html
--
If you can't open it, you don't own it.


hortnut
Huh?

join:2005-09-25
PNW
kudos:1
Reviews:
·Comcast
reply to fartness
It is all here-

IRS Offers Tips for Year-End Giving

»www.irs.gov/uac/Newsroom/IRS-Off···ing-2012

Determining Value of donated goods-

»www.irs.gov/publications/p561/ix01.html

On just one item, clothing:

Used clothing and other personal items are usually worth far less than the price you paid for them. Valuation of items of clothing does not lend itself to fixed formulas or methods.

The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value.

You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal. See Deduction over $500 for certain clothing or household items, later.

For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return.

homster

join:2006-04-30
reply to fartness
said by fartness:

What's the extra IRS form if I give over $500 or something like that? Should I only do $500 per store so I don't have to fill out the form? How will that work with my taxes if I have 3 different $400 donations for example? Not sure if I should split them up over tax years either.

If the total of all noncash contributions is $500 or more, you will need to fill out Form 8283.


fartness
computersoc dot com
Premium
join:2003-03-25
Look Outside

1 edit
What about two transactions of $400, to total $800?


hortnut
Huh?

join:2005-09-25
PNW
kudos:1
Reviews:
·Comcast
Looks like the total amount given in any year. Give 200 here, 500 there, 100 again, gotta give Uncle his form.

Value of clothes and other is set by what it would sell at thrift store and such, if reading correctly.

"If the amount of a taxpayer’s deduction for all noncash contributions is over $500, a properly-completed Form 8283 must be submitted with the tax return."

Aren't taxes fun!


fartness
computersoc dot com
Premium
join:2003-03-25
Look Outside
Is this form something I get from where I donated the items, or the form I fill out that I give to the store that says "1 Shirt - $5" etc.

I claim my taxes online, so will I still have to snail mail in that IRS form? Sounds like I don't have to give a description of the items if I keep each transaction or item under $500.


hortnut
Huh?

join:2005-09-25
PNW
kudos:1
Reviews:
·Comcast
It is an IRS form. Can download it directly from their site or read it online at irs.gov. I no longer itemize, but do my Taxes online. Would imagine the major Tax Packages would have it built in.

Would suggest reading the IRS instructions in completing the Form to their satisfaction.


Hayward
K A R - 1 2 0 C
Premium
join:2000-07-13
Key West, FL
kudos:1

3 edits
And really what are you dumping??? I took like 5+ garbage bags of stuff to SA when I moved from Albany NY to Key West. (ordinary winter clothes I would not need anymore)

Pretty much I just claimed the $500, there were no designer clothes or such. And no I wasn't try to dump garbage either. Now I am curious what you would have to show are was in decent repair as someone mentioned above... item for item documentation?

Again 20 years ago that not an issues, maybe it is today.

What I tossed may have been worth somewhat more... but not worth the complication of claiming more.

Pretty much unless other reasons to audit you, IRS is not going to bother, unless you go overboard.

But don't send up red flags that like 3 bags of clothes are used worth over $1000.

If it is a lot of high end designer stuff better off to take it to a consignment shop and forget the tax deduction.

--


homster

join:2006-04-30
reply to fartness
said by fartness:

Is this form something I get from where I donated the items, or the form I fill out that I give to the store that says "1 Shirt - $5" etc.

I claim my taxes online, so will I still have to snail mail in that IRS form?

Form 8283 is an IRS form. I don't know how you file your taxes online, but I do know that it is included as part of TurboTax Deluxe. I file electronically using this program.

said by fartness:

Sounds like I don't have to give a description of the items if I keep each transaction or item under $500.

You will need to file 8283 if the TOTAL of ALL your noncash contributions is $500 or more. The Form is fairly simple to fill out:
a) Name and address of organization
b) Description of donated property (use something like): Clothing, Household items, TV
c) Date of donation
d) Fair market value (use value from »itsdeductibleonline.intuit.com)
e) Specify valuation method: say something like "Comparative sales".

I usually use »itsdeductibleonline.intuit.com to get the valuations of my donated goods. You will be surprise what your items are worth!


Fir_Na_Tine
Giggity Giggity
Premium
join:2001-01-03
Sout Joisy
reply to fartness
AFAIK GoodWill doesn't give you a dollar amount of your donation just a receipt list of how many items. At least when I dropped of some stuff they did it that way. I don't get the receipt anymore and just drop it off.
--
"When the power of love overcomes the love of power, the world will know peace."
-Jimi Hendrix


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
Correct - they are not in the business of appraising items - that is up to the person dropping it off. I estimate how many items in the bag/box (usually cloths/toys) and plan on about $1.00 per shirt and pants at about $2.00 per.

Receipt will have the total number of bags or boxes - if they are loose I am not sure what they do as I won't take anything in without it being boxed or bagged.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


Hall
Premium,MVM
join:2000-04-28
Germantown, OH
kudos:2
reply to Fir_Na_Tine
said by Fir_Na_Tine:

AFAIK GoodWill doesn't give you a dollar amount of your donation just a receipt list of how many items. At least when I dropped of some stuff they did it that way

Obviously there's rules involved as Salvation Army is now the same way. In the past, they did actually give you a dollar amount. We donated items to a women's shelter last year or two years ago and the lady put a dollar value for the items.
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