When donating clothes, how do you know how much to write down for tax purposes? I didn't do that this year, but would like to do so next year.
Since used clothing has almost zero value, I'm pretty sure you have to donate literally tons of it to get anything worthwhile
One thing you could do is visit a Goodwill store and see how much they are charging for similar items. H & R Block also has a program called Deduction Pro which calculates the value of items you donate. I think it is now coming free with purchase of the Tax Cut software.
The tax law changed this year, especially with respect to donating cars/trucks But generally you can deduct the fair market value of a donation to a charitible org. You must provide proof of fair market value get a receipt from the org. If you are talking lots of money - talk to a tax attorney or the IRS
How do you come up with the "fair market value"? From what our tax person told us the charity will usually just give you a blank receipt and it's up to us to come up with a figure. She said that as long as it's not a huge red flag amount the IRS won't take much notice. The thing is I have a LOT of clothes I'd like to finally give away, most in pretty good shape and I have no idea what the market value is.
Here's what I used to get fair market value for my donated clothes and depending on the condition of the clothes donated: Valuation Guide
