Gifts to charity--any tax advisors out there?

Question

Gifts to Charity?

I have a question about donated property. I did a major cleaning this past year and gave several times to Goodwill. I have 7 separate receipts. Can all the receipts only total $500 or I will have to fill out Form 8283? I know with cash donations (at least for 2006), if they are individual donations to church for example you don't combine the total. So...do I combine all the receipts? If not, can i claim about $1200 worth of donations (have documentation) and not do the additional form?

Answer 1

If your non-cash donations are less than $500 you do not have to fill out an 8283. It is OK to combine them on the schedule A. Remember that non-cash deductions must be at Fair Market Value, the price at which a willing buyer and a willing seller would make a transaction.

Total of all transactions is generally limited to 50% of your Adjusted Gross Income 1040 line 37

You can combine cash donations to the same charity on Schedule A. Contributions to one charity of $250 or more require you to have a written substantiation from the charity (canceled checks don't count).The 8283 does not apply to cash.

Answer 2

If the total of all receipts of non-cash donations is over $500, you have to fill out form 8283. You cannot treat these like the individual donations to churches. That treatment is just for cash donations, not "goodwill" donations.

Just list the 7 separate receipts on Form 8283..(as long as there are no auto donations) the form is not hard to fill out....just put in date of donation; if you don't remember when you purchased the items just put "various", But put down the purchase price about 5 to 10 times what the FMV is now... and say the "method of valuation" is "thrift shop prices".

But this is important...keep your detailed list of all 7 separate groups of donations just in case the old Uncle comes a looking.

Go to irs.gov and search Form 8283. Instructions will tell you all you need to know. As long as the total of all your non-cash donations don't add up to more than $5,000 you don't have to worry about any appraisal.

Answer 3

If u go to irs.gov they have a list of FMV on donated clothing, household items, etc...is worth the trip. A nice pair of dress slacks...u get to take $10.00 for it...etc..Filling out form 8283 is worth the deduction and is very easy to fill out. Turbo tax also has the Fair Market Value list in their software.

Answer 4

Charitable bequests in wills are 100% deductible for estate tax purposes, though they don’t generate charitable deductions during your life. When a life income gift or an outright gift is made, the transfer is irrevocable, so the total value of the gift is immediately removed from your taxable estate; since you are no longer the owner of the donated asset, there is nothing to be taxed.

Maybe. If your life income gift is funded with cash or high-basis property, the income from a charitable remainder trust or a gift annuity can be largely tax free. Unfortunately, income from the Personal Income Fund is fully taxable.

Answer 5

You will need to do a form 8283. The form is actually more simple than it looks(Something about the IRS and forms makes ppl cringe) make sure that you list the items and the FMV. its amazing how difficult doing something good for other people can sometimes make it more difficult on your taxes :)

Tax Pro

P.S. got a question call your local H & R block they can give the advice you want for free :)

Answer 6

You can group them together as "non-cash" donations.