About Clothing Donation for Tax Deduction
If you have clothing that you no longer need or want, donating it to charity can benefit you and others. Donations can only be made to qualifying organizations such as nonprofit groups that are religious, charitable or educational in purpose. You can find more specifics about the types of organizations that qualify in the IRS link under "Resources." The value of your deductions cannot exceed 50 percent of your adjusted gross income.
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Condition
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Items donated must be in good condition, meaning no noticeable stains or rips.
Fair Market Value
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You can only deduct the fair market value of items. This is what they would sell for at a thrift store or on eBay.
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Documentation
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The IRS requires a receipt for donations. This receipt should include the name of the organization, the date and the facility location, along with a detailed description of the clothing.
Item Information
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For your detailed property description, you should list what the item is, its fair market value, the date of purchase and original purchase price (or an estimate). You may also wish to take a photo of all your items for additional proof.
Exceptions
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If you donate clothes in an unattended location, such as a bin in a parking lot, the IRS does not require a receipt, but you should have all other documentation.
Considerations
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Donations over $500 require IRS Form 8283. Donations over $5,000 require appraisal.
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