Did you recently clean out your closets at home? Before you haul bags and bags of clothing and other unwanted personal items to your local Goodwill or other donation center, take a moment to determine whether your donation is tax deductible.
Donated clothing and household items must be in good used condition—or better—in order for you to deduct the value from your taxes. You’ll also need a receipt from the charity that includes the following information:
- The organization’s name
- A description of the items donated
- The date of the donation
- The donation location
The total value of the items you donate also matters. The larger the non-cash gift, the more documentation you’ll need. If your donation exceeds $250, you’ll need the charity to clearly state whether you received any goods or services in exchange for the donation. Contributions worth more than $5,000 must be appraised in order for you to deduct the value from your taxes.
If all this sounds complicated, remember that Taxation Solutions, Inc. is here to help. We’re St. Louis’s choice for tax resolution and more, able to answer your questions about charitable deductions and other tax problems. Call or e-mail us today to learn more, and to tell us about your tax help needs!