Tax News

Donations Done Right - How to Value Donations to Thrift Shops


San Luis Obispo, CA (PRWeb)  Jan 2, 2009 - It feels good to purge the house of unwanted clothes, lamps, books etc. and drop them off at the thrift shop for the needy.  Imagine how good it would feel, with that same donation, to pay less taxes to the IRS.  How?  Claim the fair market value of your donations to boost your charity deduction and lower your tax bill.  Want to do donations right this year?  Here’s how.
 
Pull It    Go through your stuff every week or month and physically pull out what you no longer want or use. Valuable items are lurking in every room, drawer, hanger, and shelf in your house. Find them, cut the emotional umbilical card that makes you keep them and pull them out.
 
Collect It    Designate a plastic bin or garbage bag to throw unwanted items into and locate it in a convenient place in the garage or laundry room. If everything is in one place, it’s easy to grab and take to your nearest donation center.
 
Itemize It    Save yourself time by putting a clipboard on the lid of your collection container to create an itemized list as the items get thrown in. If this method doesn’t work for you, take a few minutes make a list or take a picture of the items spread out on the ground to remind you of exactly what you are donating.
 
Donate It    Call for pick up or drive it to your favorite donation center or thrift shop.  You’ll be getting unwanted items out of your house and into the hands of those who could really use them, but don’t forget the important next step…
 
Value It    Value donations to get a big charity deduction.  The donations fair market value can easily be found with the help of charity donation websites such as CharityDeductions.com or Itsdeductible (for TurboTax users).  Bottomline, your stuff is worth more than you think.  Who would have guessed that a pair of standard brand women’s jeans in like-new condition could be worth $19 towards your charity deduction!  Even if you claim the standard $500 deduction, you could be missing out on a powerful tax deduction that could save you money.
 
Roxy Hambleton of Positively-Organized.com says, "I was thrilled to find CharityDeductions.com to help my clients organize and value donations.  As a Professional Organizer, I spend my day encouraging others to let excess possessions go and let 'someone else enjoy it'--what a plus that now I can give them a breakdown of what their donations are really worth to get a substantial write off on their taxes.  My clients are thrilled!!!"

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