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ltsails
New Member

I have household goods that we plan to donate. The items may be over $5K IRS limit, & require appraisals. Could we make multiple donations under $5K to bypass this?

The reason we are doing this is because we are selling our house.

For example 

Donation 1 to Goodwill $2500

Donation 2 to Habitat $2500

Donation 3 to Goodwill $4000

Donation 4 to Habitat $3000

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1 Reply

I have household goods that we plan to donate. The items may be over $5K IRS limit, & require appraisals. Could we make multiple donations under $5K to bypass this?

No, that kind of gaming the system is not allowed.

However, the rules say you must get an appraisal when donating a single item or "group of similar items" worth more than $5000.  It is not clear where to draw the line regarding a "group of similar items".  (And, not only do you need the signature of the appraiser on a form you will mail to the IRS, you also need the signature of a financially responsible official from the charity.)

For example, a book collection, a baseball card collection, and old clothing; can probably be considered to be 3 different groups of similar items.

You might be donating kitchenware (pots, pans, dishes), appliances (old fridge, washing machine) and furniture.  Maybe that can be considered to be 3 groups of items that could each be under $5000.  But if you get audited, the examiner might decide it should all be lumped together as "household goods" and deny the deduction, or force you to go to tax court to prove otherwise.

Frankly, the simplest thing will be to have an estate sale (you can hire professionals to do this for you) and then donate the cash proceeds.

Alternatively, someone from an estate sale company can probably give you a qualified appraisal for a fee.

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