topic Donations under $5000 in Deductions & credits

Donations under $5000

kimberlyjg1986 — Sat, 01 Jun 2019 01:56:29 GMT

I donated SEVERAL bags of clothing totaling around $2000-$3000. do i need itemized receipts or just the estimated value? When salvation army and Goodwill took the items, i didnt get itemized reciepts.

No, you do not need itemized receipts for your donations...

MinhT — Sat, 01 Jun 2019 01:56:31 GMT

No, you do not need itemized receipts for your donations of used clothing to Goodwill or the Salvation Army. Goodwill or the Salvation Army would give you a generic receipt and you would need to estimate the fair market value of each batch donated.

The following is an extract from IRS Publication 561:

Used Clothing

Used clothing and other personal items are usually worth far less than the price you paid for them. Valuation of items of clothing does not lend itself to fixed formulas or methods.

The price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value.

You cannot take a deduction for clothing donated after August 17, 2006, unless it is in good used condition or better. An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 requires a qualified appraisal.

For valuable furs or very expensive gowns, a Form 8283 may have to be sent with your tax return.

TTMINHT worte: No, you do not need itemized receipts for...

bwa — Sat, 01 Jun 2019 01:56:33 GMT

TTMINHT worte: No, you do not need itemized receipts for your donations of used clothing to Goodwill or the Salvation Army. Goodwill or the Salvation Army would give you a generic receipt and you would need to estimate the fair market value of each batch donated.

I disagree. The IRS requires a receipt that contains “A reasonably detailed description of the property.” A reasonably detailed description is not “several bags of clothing.”

While I concede that this requirement is not always required by the IRS it is important to note that they can rely on it and deny a deduction for the contribution due to lack of an adequate contemporaneous receipt.