Give Me a Break!

.....a Tax Break!         

       Face it, you’ve been putting it off all winter long.  Maybe you have to turn sideways to get into the storage room or you've given up on parking your car in the garage.  Now that the temperature is rising and summer's just around the  corner, it's time to think about Spring activities around the house, including some serious Spring cleaning.  Turn those pondering thoughts of how you managed to collect so much "stuff" in your garage, in your office, and in your closets into thoughts of freeing yourself from all the clutter.   

             And you do have a big incentive.   You could get a tax deduction for it.  Are your closets full of out-dated clothes (or in some cases, clothes that you've outgrown or never even worn)?   What about all those books you've read over the past year?   Just recently,  Half Price Bookstore was giving away thousands of books to area non-profits during the company’s 14th annual Half Pint Library book drive, and the Dublin Library is always accepting book donations.  

              So, give yourself a break! A Tax Break.   The "tax season" is never-ending.  When one tax year comes to a close, another has already begun.   So, if you itemize deductions , Uncle Sam will allow you to take a deduction on your tax return for donating all that stuff to a charity.  There are a few simple rules you have to follow to benefit from this tax break.            

    If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution.   You can't take a deduction for clothing or household items  you donate unless they are in good used condition or better.   Remember, your give away should be of value and use to the recipient.    

            In recent years the IRS has stiffened the required documentation for donations of clothing and other household items to nonprofit organizations like the Salvation Army or the Goodwill Industries.  “Three bags of clothing” or “two boxes of books” is not an adequate description of the donated items to claim the deduction.  You must have a list of the donated items along with the fair market value you have placed on those items, and some form of receipt or acknowledgement from the organization.                

 So, go ahead and give yourself a break – get rid of that extra stuff, simplify your life,  and enjoy lowering your taxes!