I’ve donated a bunch of stuff to Salvation Army in the beginning of 2008 (don’t remember the specific items exactly). They gave me a blank receipt. I’d probably estimate the value of the donation at about $5,000 when new (it was a ton of toys and children’s clothing and adult clothing). What value should I enter on my tax return? Is entering $5000 too much? I also don’t want to trigger an audit.
You need to have a receipt itemized with the items and the value. Most people use the value the item sells for in the thrift store. The IRS website as a list of values also. Maybe they are worth 10 or 20% of their purchase value.
May 2nd, 2010 at 5:26 pm
If you use Turbotax they have a deduction maximizer program that lets you choose the values of what all you gave. It is well worth the money. Things are worth more than you think.
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May 2nd, 2010 at 6:15 pm
This deduction is itemized deduction. You will take deduction only if your itemized deductions are more than your standard deduction..
Read: http://taxipay.blogspot.com/2008/05/itemized-deductions.html
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May 2nd, 2010 at 6:47 pm
$5K is a lot of donations and it will trigger an audit. Remember, the value is what they were worth when you donated them, not what they cost. It would be hard for used clothing to be worth much. Also, if audited, you will need detailed records of what you donated, their value and substantiation of that value.
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May 2nd, 2010 at 7:34 pm
You need to have a receipt itemized with the items and the value. Most people use the value the item sells for in the thrift store. The IRS website as a list of values also. Maybe they are worth 10 or 20% of their purchase value.
References :