Thursday, March 24, 2011

Clean up your fashion closet for the good: where will you donate this year?

clean out your closet and donate the items which are in good condition or better. 

Before you go to your favorite charity, wash and dry everything. 
If you will itemize your tax deductions, then choose a charity which is a 501(C)(3). 
Make a list of your items. 
Note the Fair Market Value of the lot or for each item.*
While you donate at your favorite charity, ask for a signed receipt. 
Back at home, staple the receipt from the charity to your list of items and keep it with your tax records for the year.

Hospice Unique Boutique
old sign

Fill out lines 16 or 17 Schedule A, Itemized Deductions of Form 1040 Gifts to Charity by cash or check or Other than by cash or check

That was easy!

Fair Market Value means the price that buyers of good used condition items actually pay.

Read IRS Form 8283 about non-cash charitable deductions.

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