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Financial Planning / Tax Strategies
|Subject: Re: Charitable deduction question||Date: 7/30/2013 12:20 PM|
|Author: Wradical||Number: 118920 of 121596|
My husband and I just completed a yard sale, and want to donate the unsold items to charity. We will keep our receipts, and no donation will be more than $250. My understanding is that we can take up to a $500 deduction for this on our tax return. Question -- is that $500 per person, or $500 total?
Thanks for any help, and apologies if this has been asked before.
The $500 is not a limit on what you deduct. You can deduct much more than that - the fair market value, up to 50% of your AGI, or 30% for capital gain property.
But if you give over $500 (in total) in noncash items, you have to include Form 8283 with your return. And in my experience, this will NOT usually generate an audit, as long as you don't go overboard with things. I'm always amused by people whose favorite charity is Goodwill, and all they donate is used household items.
More particulars are in IRS Pub. 526
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