Charitable Donations

posted Sep 9, 2012, 7:43 AM by Lou Peppe   [ updated Dec 6, 2013, 1:09 PM ]

The end off the year is rapidly approaching so now is a good time to think about weeding out your clothes closet and little used kitchen gadgets and donating them to charity.  It’s a great way to pass on items to those who can use them and earn you a tax deduction.  You do need to keep track of the items you donate and determine their real value.  Most organizations that accept donations will have a guide to help you determine their value.  Here is a link to Goodwill’s list.

Keep in mind that:

·         Items need to be in good condition

·         If the value is more than $500 you need an extra tax form

·         If the value is more than $5,000 you need an appraisal.

 

There are many free online tools to help you track your donations.  I use TurboTax’s ItsDeductible Online and have for several years.

There are also easy to use smartphone apps that help you track and value your charitable donations.  IDonatedIt is a popular app that only costs a couple bucks and is available for both android and iphone.

 

As with any tax related issues it is always valuable to consult your tax accountant.  

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