Donated to Goodwill...is this estimated value too much?

Question

I donated hundreds (maybe even 1,000 or more) items to Goodwill. Most of the stuff was really nice, but just didn't fit anymore (I've had two babies in 2 years....I'll never wear size 0, or 2 again). Anyway, I took the number of each item I gave them, halfed it (because maybe some of the items may not be usable who knows), then picked the medium value that was on the back of the sheet as the value for each item. For example: I gave them 4 dresses, I only reported 2, and the values ranges up to 50/each. So I reported they were each worth $25. I did this with all my items, and the value came to almost $1,700 for everything. Do you think this is too much and I am risking being audited, or do you think this is fair, and an okay value. Like I said all the clothes were in good condition (some still had tags) they just didn't fit me, my husband or our kids anymore.

Answer 1

If you can document what you gave you should have no problem. You must fill out part A of Form 8283 with your return or your deduction may be disallowed.

Keep your list of what you gave in case your return is examined.

Answer 2

Might be high. The amount you can deduct is basically what Goodwill could sell them for - and I don't think very many dresses go for $25 at Goodwill, if they're regular dresses and not prom formals or something. But two dresses at $25 each would be $50, and $12.50 each for the four you really donated would be that amount also, so on those you're probably pretty close. You could look around the Goodwill store and see what similar items are selling for.

Used clothing doesn't typically go for high prices or anywhere near the original cost. If the sheet you're talking about was given to you by Goodwill, then maybe you're OK - but keep track for your own records of the TOTAL number of each item you gave them.

If you're audited, then the auditor might or might not accept your amounts. But unless there's something else on your return that triggers an audit, Goodwill contributions of $1700 wouldn't be likely to.

Answer 3

Actually, the key word in your question is ESTIMATED. Unless the estimate was made by Goodwill on a receipt, ANY estimate is to much. Even $1.00 per item is not allowed unless Goodwill agrees.

Used items in PERFECT condition are NEVER worth what they would sell for new. The deduction is based on CURRENT value, not replacement value.

Answer 4

It seems a little high. Generally 1/3 to 1/4 of your purchase price is safe.

Use this GoodWill Fair Market Value as a guideline. http://www.cincinnatigoodwill.org/donating/FMV2005.pdf

Best wishes.

Answer 5

Ninnasgramma is right, if you have documentation of what you donated and used their price list then you should be fine, just make sure you hold on to the documentation. I'm a taxpreparer and I've done this a lot of times.

Answer 6

there are various companies nicely worth way greater beneficial than one thousand million money. i don't be attentive to the place you arise with one thousand million money for the Roman Catholic Church. basically the homes/genuine assets of all the Catholic Church, college, wellbeing facility and different residences all over the area could be far greater in fee than an insignificant billion. basically one college campus in a great US city may be nicely worth hundreds of thousands. Multiply that by thousands of universities and hospitals international and church grounds, cemetaries, shrines etc in maximum international places of the worldwide and maximum each and every US city. All that being stated, the full argument is particularly stupid. you could no longer positioned a value on many artistic endeavors and products of shape. The history by myself and ask your self make a lot of them worthwhile.

Answer 7

Did you get a receipt from GoodWill?
.If you didn't you could get in trouble .
Anything over $500.00 is suspect .

Answer 8

this next tax season you will be required to provide receipts on all charities. So hopefully you are ok on this last tax season.