Your Estimated Savings Is:
If your non-cash donated item is valued at less than $250, you'll simply need to have a receipt from the organization you donated to in order to deduct it. For a single donation valued at more than $250, you will also need additional documents from the charity you donate to. These documents will describe your donation and its value in more detail. When filing your taxes, you'll need to have your receipt and any other documents from the charity on hand, but you don't need to file these materials with your tax return. Simply keep them on file with your other tax records.
Non-Cash Donation Tips:
- If your non-cash donations for the year exceed $500, you'll need to fill out IRS Form 8283, the Non-cash Charitable Contribution form, when you file your taxes.
- When making a non-cash donation such as clothing or household items, items must generally be in good condition. The IRS only allows you to claim a deduction on clothing and household items that are in "good or better" condition.
- Vehicle donations are a little different than other non-cash donations. You can claim the fair market value of household items, but with a vehicle donation you have to claim the amount for which the vehicle actually sold. Basically, the IRS is only interested in the actual sale price of the vehicle, not its fair market value.
- Donating good-quality items is a great way to support your favorite charity. Items that are in poor shape might not be as beneficial to the charity you're supporting.
- Donations of stock or other non-cash property are usually valued at the fair market value of the property.
- Take a photo of your non-cash items before you donate them. If the IRS were to challenge your valuation of your item, a photo is great evidence of your items' worth.
- You cannot deduct contributions made to specific individuals, political organizations and candidates.
- Oftentimes charities will have specific "wish lists" of items they need. Consider this before dropping off items they might not need at the moment.
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<a href="https://www.wheelsforwishes.org/tax-savings-donation-calculator/"><img src="https://www.wheelsforwishes.org/static/uploads/image/tax-calculator.jpg" alt="Tax Savings Donation Calculator" style="display: block; margin: 20px auto; max-width: 100%;" ></a> by <a href="https://www.wheelsforwishes.org/">Wheels For Wishes</a>