I started donating alot this year to our Goodwill, and I even have to drive 30 mi to do it. I have $750 in receipts for this year. But the tax law changes require me to have an appraisal for anything over $500 next year. Goodwill doesn't do it. So how in the heck do get an appraisal for donations like that? I live in a rural area also, so I'm not even sure we have someone/thing on our area... where would I even start?
2006-12-27 06:35:41 · 24 answers · asked by Lisa F 1 in Business & Finance ➔ Taxes ➔ United States
The appraisal rule only applies if: taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. What they are saying is, everything has to be in "good" condition. If it is not "good" condition, then you can only donate one item over $500 if it includes and appraisal. As long as everything you donate is in "good" condition, you don't need an appraisal, no matter how much you donate. But if they audit you, you must prove(with detailed receipt and possibly photo) that they item was in "good" condition.
2006-12-27 07:40:19 · answer #1 · answered by Dana B 2 · 13⤊ 3⤋
In my area, I have found that Hospice Shops are willing to give an appraisal, or at least break down the donation value better, so rather than having a receipt that says "various household items $200", it goes "10 Men's shirts @$3 each".
Also, if you bring it to their attention, the Goodwill might step it up, as they do not want donations to start dropping because of the new tax laws
2006-12-29 23:59:34 · answer #2 · answered by Anonymous · 4⤊ 1⤋
Dana B has a good answer. The appraisal thing is for big ticket items such as cars, boats, etc... In your case, just make sure you are donating usefull stuff. not clothes that should be thrown away. Pictures are good. I would have them dated and signed by the goodwill worker if you are really worried about it.
If you give cash, you must have a receipt for every thing you give starting in 2007. Even if you drop 20 in the collection plate at church, you must have proof to deduct on 2007 tax return.
The government is trying to crack down on charitable contributions being taken advantage of. Remember, The government did not even audit 1% of all individual tax returns filed last year. As long as you are not intentionally defrauding the U.S. Gov. I would not worry and just try to keep the law the best you can.
2006-12-28 04:36:22 · answer #3 · answered by Dave 3 · 7⤊ 1⤋
I’m not sure where you got your information, but it's not $500.00 it's $5,000.00 worth of an individual (non cash) item that you would need to get an appraisal. If you happen to have donated something that would require an appraisal, then you would need to find an appraiser for that particular item. Such as an appraiser for jewelry, car, land or antiques.
Now the IRS can deny deductions for items that are deemed of "minimal monetary value”. When your total amount of donated articles (or as the IRS calls them, non cash gifts) exceeds $500, you have to file with your tax return Form 8283, Non cash Charitable Contributions, detailing your generosity. Taxpayers still can inflate the used property's value on the form, but with the new guidelines and charitable groups' reminders of it, lawmakers are hoping that individuals will follow the new rules. From the enforcement side, don't be surprised to find tax examiners taking closer looks at this form and asking more follow-up questions than usual.
Now, if you have given cash in an amount of or exceeding $250.00, then you need to get a letter from the organization proving how much you donated. This letter will go to your accountant at tax time. The new law is for the $250.00 cash donation. If you send a check, you must have a letter from that organization. The cancelled check is not enough proof.
I think you will be fine with the $750.00 in receipts. I also think it would be in your best interest for you to speak with a qualified tax preparer for any of your tax needs.
Good Luck!
2006-12-30 06:40:05 · answer #4 · answered by mg3 2 · 4⤊ 2⤋
there is a limit to what u can rite off as a donation according to
your income leveland the person/s at goodwill or what ever charity should have a person with the value answer...and you need to get a receipt to file with your tax return.
..
2006-12-31 06:21:27 · answer #5 · answered by outformenotyou 2 · 0⤊ 0⤋
this is probably not the answer you are looking for but.... I could not find the info so i left the estimate at $500 and had them take EVERYTHING.... the estimate for the goods over $500 just seemed so greedy and trivial to worry about and embarrassed me in comparision to the potential needs of a possibly impoverished person who has genuine need for the very basic goods for life. even if my donation ends up in an upper middle class home I feel much better by just giving and letting it go.
2006-12-30 08:39:11 · answer #6 · answered by larrydoyle52 4 · 4⤊ 1⤋
Turbo Tax It's Deductible will give you the answers. I use this software. The section will tell you what each item is worth. man's suit, ladies suit, ladies dress, jeans, etc...
ALSO, if your adjusted gross income is less than $50K a year, you can go use TURBO TAX free by going oneline www.irs.gov.
Click n "File free", yes you'll have to put in your credit card information but it will not deduct anything if your adjusted gross income is less than $50K for the year. I used it last year and it was totally free including the electronic transfer.
2006-12-31 02:53:02 · answer #7 · answered by Anonymous · 2⤊ 0⤋
You can go to your local Salvation Army. They will give you a receipt for the value of your donations. You can use the receipt for tax perposes.
2006-12-31 06:14:28 · answer #8 · answered by melodie s 1 · 0⤊ 0⤋
Log on to TurboTax.com. They have a product called "It's Deductible" that is approved by the IRS to evaluate caritable contributions. You can buy the disc or pay to download it. It is inexpensive to purchase ( around $19.95) and will give you a printout for each item that lists its value. I have used it for the last 5 years and have saved hundreds of dollars on my taxes. I was definitely undervaluing clothing and items donated to charities. Plus - you have the added assurance that what you are deducting meets IRS guidelines.
2006-12-30 04:18:25 · answer #9 · answered by arkiemom 6 · 1⤊ 1⤋
I too, live in a rural area and don't have access to a local hospice store. I use either our good will store or the local second hand store. They have the ability to write out any type of receipt you may need for your taxes.
2006-12-30 06:04:49 · answer #10 · answered by SandyM 2 · 3⤊ 1⤋
Ask Salvation Army for appraisal! They are happy to help!
2006-12-31 03:24:30 · answer #11 · answered by Anonymous · 1⤊ 0⤋