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Step 1
Gather all items that you planned on selling in your yard sale.
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Step 2
Take quick digital pictures of the items.
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Step 3
Create a written list of each item with a very brief description of the item. For example, you may describe a shirt like this, "Long sleeved Ralph Lauren, button up shirt. excellent condition". Include the date on the list.
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Step 4
When the list is complete, gather all of the items and take them down to your local Goodwill, Salvation Army, or other qualified charitable donation group. Make sure you get a receipt for the drop off.
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Step 5
When it is time to file your income tax return next year you will be able to deduct the "thrift store" value of each item you donated. Typically you are going to be able to deduct much more than the price that you would have fetched in a yard sale. Keep in mind that this in only a deduction, not a credit. So your true "profit" is based on your marginal income tax rate.
For example, if your taxable income is between $65k and $131k (filing jointly) then you will save 25% on the total value of your deductions. This means that an $8 shirt will net you a $2 real profit. This is not bad considering that same shirt would have likely gone for $1 at your yard sale. -
Step 6
I would like to summarize all of the benefits of donating your items, as opposed to selling them in a yard sale:
1. You will not be able to sell all of your items at a yard sale; whereas by donating your items you get rid of everything in a single trip!
2. The prices you get at a yard sale are much lower than equivalent thrift store values due to time and presentation constraints.
3. You don't have to spend hours of your time tagging items, dragging out tables and chairs, and setting up items for display.
4. You don't have to deal with people trying to haggle you for a $.25 discount on an old pair of shoes.
5. You don't have to get up at 6am on a Saturday morning.
Comments
debdavis said
on 4/12/2009 EXCELLENT ARTICLE !!!I've been trying to tell my mother this for years.