Under a provision of the 2006 Pension Protection Act, contributions of physical items must be in good used condition or better to qualify for a deduction. This means you can’t deduct ripped or discolored clothing (unless those jeans were bought in such condition!). Non-working Appliances don’t qualify for a deduction any longer, either.
If you donate noncash property valued at more than $500, you need to report to the IRS how and when you acquired the property and your cost basis. You must file Form 8283, Noncash Charitable Contributions, for all donations of property valued at more than $500.
When this $500 limit came into being a number of years ago, the IRS reported record numbers of taxpayers claiming $495 or so of noncash contributions. Now there’s a surprise!
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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