Donating your griddle?

Donating your griddle?

griddleGood news. If you itemize your deductions on your tax return (and you want to do this if the total of your itemized deductions exceed your standard deduction) you can claim a deduction for the fair market value of the goods that you donate to a qualified charitable organizations.

Get proof of the donation.  A door hanger or receipt from the organization is needed.  You should get this at the time of the donation and it should show the date and say your haven’t received anything in exchange for the donation.

If you did receive something for making the donation then you must deduct that amount from the donation.

There is a handy Salvation Army Guide to use to value the goods.  Consider the condition of the item and the brand.  Basically you can deduct the amount someone would pay for that item in the condition it is in.  If it’s a pile of dirty socks then probably no one wants them so you likely shouldn’t deduct anything for them.

There are special rules on what you need to substantiate your donation based on the amount you are deducting.

Form 8283 is used to take this deduction.

And by the way, it is suggested that you deduct between $4-$12 for that griddle.

There are special substantiation requirements for donating a vehicle.  You will need to provide the Form 1098-C from the organization you gave the car to.

If the fair market value of a car is $4,300 but they sell it for $3,700 then you get to claim $3,700.  If the organization says it will be using the car instead of selling it, then you get to claim $4,300.  But if for some reason they sell it for $400, you get to claim a maximum of $500.  They must give you this form within 30 days of the date they sell it.

Publication 4303 courtesy of the IRS.

Linda Reinhardt

Comments are closed.