If you give away property whether it’s clothing or household items, get a receipt that includes a description of the donated property and the amount of the fair market value of the donated property.
If a donation is left at a charity’s unattended drop site, keep a written record of the donation. Your record should include a description of the property, its condition, and its value (of course!). The IRS is looking for appraised values or fair market value. Without substantiation, the IRS might be looking for yard sale value.
For any kind of vehicle, boat or airplane, the deduction is now limited to the gross proceeds from the sale of the item. Back in the good old days, you could claim blue book value for a clunker. Those days are gone forever! This rule applies if the claimed value of the vehicle is more than $500. Form 1098-C, or a similar statement, must be provided to the donor by the organization and attached to the donor’s tax return.
As always, please visit our website www.weslingfinancial.com or email us at info@weslingfinancial.com for further info and to discuss your personal situation.
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