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

Discussion in 'Tax' started by Vinny, Nov 22, 2003.

  1. Vinny

    Vinny Guest

    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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    Vinny, Nov 22, 2003
    #1
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  2. Vinny

    Phil Marti Guest

    > (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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    Phil Marti, Nov 23, 2003
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  3. 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 ?


    >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.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Nov 23, 2003
    #3
  4. Vinny

    D. Stussy Guest

    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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    D. Stussy, Nov 23, 2003
    #4
  5. 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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    Arthur L. Rubin, Nov 24, 2003
    #5
  6. Vinny

    D. Stussy Guest

    >> 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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    D. Stussy, Nov 25, 2003
    #6
  7. > 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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    John D. Goulden, Nov 25, 2003
    #7
  8. >> 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.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Nov 30, 2003
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  9. Vinny

    Phil Marti Guest

    "D. Stussy" <> 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, Nov 30, 2003
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  10. Vinny

    Phil Marti Guest

    "John D. Goulden" <> 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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    Phil Marti, Nov 30, 2003
    #10
  11. >> 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.

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    Arthur L. Rubin, Nov 30, 2003
    #11
  12. >> 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.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Dec 1, 2003
    #12
  13. Vinny

    Phil Marti Guest

    "D. Stussy" <> 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, Dec 1, 2003
    #13
  14. Vinny

    Phil Marti Guest

    "John D. Goulden" <> 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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    Phil Marti, Dec 1, 2003
    #14
  15. Vinny

    JH Guest

    Friend of my writes me the following, and I would urgent be
    looking for your knowledge if the behavior is accepted.(the
    no. and circumstances are revised)

    I can ask for only $100 and donate the rest (500.00 value
    FMV-verified) in the name of the buyer. This way, everyone,
    me donor and the IRS are all happy. The ORG. would gladly
    asses the collection at $500++ as well (which it is anyway)/
    So there's no fraud involved, just good ol american tax
    shelter. So if you're serious....

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    JH, Dec 4, 2003
    #15
  16. JH <> wrote:

    > Friend of my writes me the following, and I would urgent be
    > looking for your knowledge if the behavior is accepted.(the
    > no. and circumstances are revised)
    >
    > I can ask for only $100 and donate the rest (500.00 value
    > FMV-verified) in the name of the buyer. This way, everyone,
    > me donor and the IRS are all happy. The ORG. would gladly
    > asses the collection at $500++ as well (which it is anyway)/
    > So there's no fraud involved, just good ol american tax
    > shelter. So if you're serious....


    I have aboslutely no idea what you said, but already it
    smells.

    If you will donate something with FMV of 100, and you can
    establish that FMV, then your deduction is 100.

    The establishment of value for gifts under $5000 is strictly
    up to you and is not up to the organization. The
    organization describes the gift and you establish its
    value. So the description should be detailed and accurate.

    __
    Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

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    Arthur Kamlet, Dec 7, 2003
    #16
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