Hi , when you itemize on your federal taxes , is there a price limit you can put down for donations? ex like I donated to goodwill $8000 worth of clothes and house accessories, is there a maximum amount you can only deduct ?I have receipts , thanks
Goodwill does not value the gifts that they receive.
If challenged, it is up to you to verify the amount of the contribution.
You should carefully review IRS Pub 526 to help you determine your deduction.
The IRS frequently audits in kind gifts to Goodwill.
You are looking for trouble with the IRS if you make large claims of donations to Goodwill. The burden of proof regarding the value of donations of items and property is always on the person claiming them. I'd advise that you consult with an accountant to file your taxes if you are looking to make large charitable deductions.
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There are some new regulations making it more difficult to substantiate your donations. Here are the ones that you should be aware of:
" To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more. If your total deduction for all noncash contributions for the year is over $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return."
" Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which generally requires an appraisal by a qualified appraiser.
For more information on charitable contributions, refer to Form 8283 and its instructions, as well as Publication 526, Charitable Contributions. For information on determining value, refer to Publication 561, Determining the Value of Donated Property. These forms and publications are available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Sadly, there's a case in which taxpayers even had cancelled checks to their church totaling more than $250, but without a written acknowledgment from the church, the deductions were denied. Follow the rules precisely and I'd also suggest photographs. Amazon has a nice program that will ship items for free to your local goodwill and you can get a receipt online. Just use the box you receive Amazon orders in, and you can print a free shipping label. Check this out: http://www.businessinsider.com/use-amazon-box-for-charity-2016-12
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