IRS Regs Clarify The Rules For Used Clothing Or Household Goods:
** You must get an appraisal and complete Section B of Form 8283 if the donated item is NOT in good used condition or better and you claim a deduction in excess of $500.
Otherwise, the Service will deny the write-off.
Per IRS (3rd paragraph from end) http://tinyurl.com/3axv9y
Household items and clothing contributed to charity after August 17, 2006 must be in at least good used condition to be deductible. This requirement does NOT apply to contributions of food, paintings, antiques. other art objects, jewelry and gems, or collections, and does NOT apply to a contribution of an item for which a deduction of more than $500 is claimed if the taxpayer obtains a qualified appraisal of the item
** But for items in good used condition or better, you only have to get an appraisal if the item is valued at more than $5,000.
** You must get an appraisal and complete Section B of Form 8283 if the donated item is NOT in good used condition or better and you claim a deduction in excess of $500.
Otherwise, the Service will deny the write-off.
Per IRS (3rd paragraph from end) http://tinyurl.com/3axv9y
Household items and clothing contributed to charity after August 17, 2006 must be in at least good used condition to be deductible. This requirement does NOT apply to contributions of food, paintings, antiques. other art objects, jewelry and gems, or collections, and does NOT apply to a contribution of an item for which a deduction of more than $500 is claimed if the taxpayer obtains a qualified appraisal of the item
** But for items in good used condition or better, you only have to get an appraisal if the item is valued at more than $5,000.
posted by Milt Baker CPA | 9:17 AM
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