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Tax deduction for donated clothing, etc. Is there a limit ?

 
 
Vinny
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      11-22-2003, 01:18 AM
We are in the process of moving and we donated tons of used
stuff to the charity organization, the last I calculated it
reaches $2,000. We knew that we can file tax deduction on
donated stuff, but we were wondering is there a maximum tax
deduction allowed ?

Best Regards,

Vincent

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Phil Marti
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      11-23-2003, 11:14 PM
>(E-Mail Removed) (Vinny)
writes:

> We are in the process of moving and we donated tons of used
> stuff to the charity organization, the last I calculated it
> reaches $2,000. We knew that we can file tax deduction on
> donated stuff, but we were wondering is there a maximum tax
> deduction allowed ?


No. Make sure you follow the documentation requirements.

Phil Marti
Topeka, KS

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Arthur Kamlet
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      11-23-2003, 11:33 PM
Vinny <(E-Mail Removed)> wrote:

> We are in the process of moving and we donated tons of used
> stuff to the charity organization, the last I calculated it
> reaches $2,000. We knew that we can file tax deduction on
> donated stuff, but we were wondering is there a maximum tax
> deduction allowed ?


>The fair market value of this gift plus other cash (or equivalent)

gifts is limited to 50% (30% if a private foundation) of your
adjusted gross income, although there is some carryforward
allowed.

>You must be able to demonstrate how you determined the fair market

value of the property you donated. Perhaps Salvation Army or
similar lists of used items valuations is a good place to start.

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Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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D. Stussy
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      11-23-2003, 11:52 PM
Vinny wrote:

> We are in the process of moving and we donated tons of used
> stuff to the charity organization, the last I calculated it
> reaches $2,000. We knew that we can file tax deduction on
> donated stuff, but we were wondering is there a maximum tax
> deduction allowed ?


50% of your AGI.

>The amount that exceeds the limit can be carried forward (ONLY) for up to 5

years, then it dies. Current year contributions always count FIRST for purposes
of the carrying time limit.

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Arthur L. Rubin
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      11-24-2003, 12:11 AM
Vinny wrote:

> We are in the process of moving and we donated tons of used
> stuff to the charity organization, the last I calculated it
> reaches $2,000. We knew that we can file tax deduction on
> donated stuff, but we were wondering is there a maximum tax
> deduction allowed ?


>1. Total charitible contributions are limited to 20-50% of AGI

(Adjusted Gross Income), depending on the type of donation and
typle of charity. (For used clothing, which is almost certainly
worth less than your basis, it's 30-50%.)

>2. See the instructions for form 8283 as to excatly what

supporting documentation you need. My recollection is:

If a single donation exceeds $250, you need a receipt
stating that you recieve no benefit in return for the
donation.

If total non-cash donations exceed $500, you need to
file form 8283, and itemize the specifics of all
non-cash donations, including name and address of
the organization, date, description, your estimate
of fair market value, and your method of estimation.

If a single "item" exceeds $500 (and I haven't checked
whether an "item" is what a reasonable person would
call an "item", or whether it could include a bag
of clothing), you have more requirements.

If a single item exceeds $5000, there are still further
requirements.

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D. Stussy
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      11-25-2003, 05:00 AM
>> We are in the process of moving and we donated tons of used
>> stuff to the charity organization, the last I calculated it
>> reaches $2,000. We knew that we can file tax deduction on
>> donated stuff, but we were wondering is there a maximum tax
>> deduction allowed ?


> No. Make sure you follow the documentation requirements.


Phil! IRC 170(d)(1)

If there were no limit, there would be no carryover
provision. :-)

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John D. Goulden
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      11-25-2003, 05:19 AM
> If a single donation exceeds $250, you need a receipt
> stating that you recieve no benefit in return for the
> donation.
>
> If total non-cash donations exceed $500, you need to
> file form 8283, and itemize the specifics of all
> non-cash donations, including name and address of
> the organization, date, description, your estimate
> of fair market value, and your method of estimation.


Is form 8283 what I need to list the donation of an
automobile (value approximately $1000) this year?

--
John Goulden

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Arthur Kamlet
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      11-30-2003, 02:21 AM
>> If a single donation exceeds $250, you need a receipt
>> stating that you recieve no benefit in return for the
>> donation.
>>
>> If total non-cash donations exceed $500, you need to
>> file form 8283, and itemize the specifics of all
>> non-cash donations, including name and address of
>> the organization, date, description, your estimate
>> of fair market value, and your method of estimation.


> Is form 8283 what I need to list the donation of an
> automobile (value approximately $1000) this year?


Yes.

Be prepared to prove the fair market value of the car. The
blue Book is a starting point, but the condition of the car
is very important. Photos of the car are useful. A
statement in the receipt signed by the recipient describing
the car in detail (condition, mileage, extra features, etc.)
is very useful.

The IRS is aware that many people donate junkers and claim
blue book, and has said they will be cracking down on this.

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Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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Phil Marti
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      11-30-2003, 02:21 AM
"D. Stussy" <(E-Mail Removed)> writes:

> Phil! IRC 170(d)(1)
>
> If there were no limit, there would be no carryover
> provision. :-)


I totally forgot the AGI limitations and was just thinking
about a $$ cap on that particular type of deduction. Glad
others remembered.

Phil Marti
Topeka, KS

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Phil Marti
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      11-30-2003, 02:21 AM
"John D. Goulden" <(E-Mail Removed)> writes:

> Is form 8283 what I need to list the donation of an
> automobile (value approximately $1000) this year?


Yes.

Phil Marti
Topeka, KS

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