Contributions of Used Property
During the season (and the year), I’ll often be asked as to what can be done to save income taxes. To this end, the simplest way to save on income taxes for little to no cost for those who itemize is to donate quality items in good condition to public charitable organizations, who can either use them or sell them for fundraising purposes.
Under existing IRS rules, a deduction for the fair market value of a given personal object to a qualifying charitable organization is allowed, provided the object is in good and useable condition. For example, if I make a donation of my used living-room furniture to a charitable thrift store and the value of the property is $1,000, I can deduct the entire contribution. If I am in a 30% income tax bracket across the board, this donation places $300 in my pocket My only cost is getting rid of a bunch of things I can no longer use.
Certain rules do apply with items of larger value or of contributions of business property, so please do not hesitate to contact us with questions, should you have any.