Thursday, February 23, 2017

Donating Items For A Tax Deduction: How Do You Calculate Value?

Tax Season Ends April 18, 2017.
It’s tax time again! If you’re looking for another tax deduction while clearing clutter from your house, you might want to donate your used clothing and other household items to your favorite charity.
If you give away things you don’t want anyway, everyone wins. You get rid of your clutter without the hassle of trying to sell your items at a garage sale or consignment shop. You also get a tax deduction while the worthy cause you choose to support gets a donation. And, if they go on to sell your things to someone who can’t afford to buy them new, there’s another person who will benefit.

Figuring out the value of these items, however, can be tricky. On the one hand, you don’t want to underestimate the value, because why take a lower deduction than you have to? On the other hand, you don’t want to raise the eyebrows of your friends at the Internal Revenue Service. You surely know the old adage: It’s better to be safe than sorry! Government manuals on the topic are too vague to be useful, but several software programs on the market can help you figure out the value of donated items. Typically priced at around $20, these programs give you what you need to claim an accurate deduction. Another benefit of using this software is that you’ll have something to back you up in the event that you might need to defend your deductions to the IRS.

For more information: https://www.irs.gov/uac/2017-tax-filing-season-begins-jan-23-for-nations-taxpayers-with-tax-returns-due-april-18