How to Deduct an In-Kind Donation
If you itemize your federal tax deductions, you can save money by deducting the money you give to charity. You are not limited to just deducting monetary donations to qualified charities. You can also deduct the value of donated goods--everything from magazines and DVDs to automobiles and houses. To deduct such in-kind donations, you need to get a receipt and perhaps an appraisal before reporting them on your tax forms.
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Instructions
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Estimate the fair market value of the property that you donate. This value is not the price at which you purchased the property; it is the current market value for the property in its current condition.
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Get an appraisal of the property, if it is valued at more than $5,000.
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Obtain a receipt from the charity. If the in-kind donation is worth more than $250, the receipt needs to state the charity's name and address, the property's description, the property's value and how you obtained it.
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Complete IRS Form 8283, if the total value of your in-kind donations exceeds $500.
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Complete Form 1040, Schedule A and attach it to your tax return to report your in-kind donations.
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