John M. Hoffman & Associates CPAs
Frequently Asked Tax Questions
"What do I need for documents, receipts and evidence to claim my charitable contributions that are non-cash?"
You need to combine your donations of like items and then follow the rules based on the combined dollar amounts.
Less than $250 - you need to have some record of your own - this should include the name and address of the organization, the date and location of the donation, a description of the donation, and the fair market value of the donated item(s).
Over $250 but less than $500 - you need all of the above plus an acknowledgement from the organization. This means that slip that the Salvation Army gives you when you drop off the goods. Accordingly, throwing a bag of clothes into a bin will not get you a receipt. Often times you are left to fill out the details of these blank signed receipts the organization gives you. In all cases, the more detail you have, the better.
Over $500 but less than $5,000 - you need all of the above plus you need your records to indicate when you acquired the donated goods and what you paid for them.
Over $5,000 - Now you are getting serious. At this level you need a qualified appraisal of the donated items. We see this most frequently with donations or art work, land, or conservation easements. The cost of the appraisal is not deductible as a charitable donation but instead a miscellaneous itemized deduction.
If you give over $5,000 of publicly traded securities (stocks or mutual funds for example) you do not need a qualified appraisal as the fair market value at the date of donation is readily available. You do of course need the letter from the organization (they give you a signed tax form).
Many taxpayers are confused as to how to value used clothing, furniture and other household items. Resources to help you with this include:
www.satruck.com/valueGuide.aspx
www.irs.gov/pub/irs-pdf/p526.pdf
For gifts of vehicles there are specific rules.
