How to value donated items for taxes

how to value donated items for taxes

Tax valuation guide for donated goods Bankrate.com Monday, January 9, 2012

Kay Bell

Taxes » Tax Deductions » Tax Valuation Guide For Donated Goods

As you clean out your closet or reorganize your household, be sure to keep track of the items you give to charity. It's your job, not the charity's, to report the value of the donation to the Internal Revenue Service.

Tax law now requires that all household items given to a charity must be in good or better condition. Those questionable items you donated in previous years and claimed were worth a few dollars because they were in fair condition are no longer acceptable.

Several computer software programs are available to help you figure the tax value of your goodwill. But many people still prefer to use pen and paper, jotting down the item and its worth as they are pulling it from the closet or dresser drawer. If that's your style, the following list will give you an idea of what your donated clothing and household goods are worth. It indicates fair market value for some common items as suggested in the Salvation Army's valuation guide.

Use the work sheets below to record your contributions and use them when you itemize your deductions.

Men's clothing work sheetAverage price per item

low and highNumber of items x price =

donation amountShirt$3.00$14.40_____ x _____ = _____Slacks$6.00$14.40_____ x _____ = _____Sweater$3.00$14.40_____ x _____ = _____Overcoat$18.00$72.00_____ x _____ = _____Belt or necktie$3.60$9.60_____ x _____ = _____Suit$18.00$72.00_____ x _____ = _____Jacket$9.00$30.00_____ x _____ = _____Shoes$4.20$30.00_____ x _____ = _____Total of all donated items:_____ x _____ = _____

Women's clothing work sheetAverage price per item

low and highNumber of items x price =

donation amountBlouse$3.00$14.40_____ x _____ = _____Slacks$4.00$14.40_____ x _____ = _____Sweater$3.00$18.00_____ x _____ = _____Overcoat$12.00$48.00_____

x _____ = _____Handbag$2.40$24.00_____ x _____ = _____Suit$18.00$72.00_____ x _____ = _____Jacket$7.20$30.00_____ x _____ = _____Shoes$2.40$30.00_____ x _____ = _____Total of all donated items:_____ x _____ = _____

Children's clothing work sheetAverage price per item

low and highNumber of items x price =

donation amountBlouse$2.40$9.60_____ x _____ = _____Shirt$2.40$7.20_____ x _____ = _____Dress$4.20$14.40_____ x _____ = _____Slacks$2.40$9.60_____ x _____ = _____Jeans$4.20$14.40_____ x _____ = _____Coat$5.40$24.00_____ x _____ = _____Sweater$3.00$9.60_____ x _____ = _____Shoes$3.00$10.50_____ x _____ = _____Total of all donated items:_____ x _____ = _____

Household goods work sheetAverage price per item

low and highNumber of items x price =

donation amountTowels$0.60$4.80_____ x _____ = _____Sheets and pillows$2.40$9.60_____ x _____ = _____Blanket$3.00$9.60_____ x _____ = _____Bicycle$18.00$78.00_____ x _____ = _____Floor lamp$9.00$48.00_____ x _____ = _____Sofa$42.00$240.00_____ x _____ = _____Throw rug$1.80$14.40_____ x _____ = _____Color TV$90.00$270.00_____ x _____ = _____Kitchen table$30.00$72.00_____ x _____ = _____Bedroom (double) complete$60.00$204.00_____ x _____ = _____Total of all donated items:_____ x _____ = _____

You don't have to send in your list of donated items with your return. Simply keep the information with your personal tax records and put the total contribution amount on your Schedule A.

Also, be sure to get a receipt from the charity of your donated goods, again for your personal records. The nonprofit won't put a dollar value on this receipt, but it will help you prove that you did indeed donate the property if the IRS asks.

If you do make a single noncash gift worth between $250 and $500 (for example, you donate a vehicle), you will need that receipt or a written acknowledgment of your gift from the qualified charitable organization.

And if the total of all your contributed property comes to more than $500, you have to file IRS Form 8283 with your tax return.

Source: finance.yahoo.com

Category: Taxes

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