How to Donate Fabrics As a Tax Deduction

List the value of donations on your tax return.

Fabrics that you donate to organizations such as Goodwill and the Salvation Army can be used as a tax deduction. The IRS allows you to deduct the fair market value of your charitable donation--fabrics in this case.

Things You'll Need

• Paper and pencil
• Digital camera
• Video camera
• Calculator

Instructions

1. Organize all of the fabrics or clothing you plan to donate to a charitable organization. You can view a list of organizations the IRS recognizes from its Publication 78 (see Resources).

2. Assign a fair market value to each item you will give away. You cannot use a value that is more than the original cost of the item.

3. Write the fair market value of each item on a piece of paper.

4. Take a picture of each item you're donating for documentation of our gift. You can use a standard digital camera or a video camera.

5. Add up the value figures of all the items you plan to donate. Use this total on Schedule A of Form 1040 when filing your tax return.

6. Obtain a receipt for the items you donate. Organizations such as Goodwill and the Salvation Army will ask you if you want a receipt and will provide you with one if you wish.

Tips & Warnings

• Think of pricing an item at a garage sale for an idea of how to determine the fair market value of clothing or fabrics.

• Pictures will help you prove what you donated if you are ever audited.

• Donations of more than $500 will require Form 8263, Non-cash Charitable Contributions, with your tax return.

References

• bankrate.com: Your old stuff can save you big tax dollars

Resources

• IRS Publication 78: Cumulative List of Organizations
• IRS Publication 561: Determining the Value of Donated Property
• IRS Publication 526: Charitable Contributions