Cleaning Out Your
Closets?
Items you donate may not qualify for a deduction under new
rules
It used to be that you could take all your unused clothing and
household items to the local Goodwill, Salvation Army, or thrift store and
reap a nice charitable contribution deduction. All you needed was a
receipt stating the fair market value and the deduction was allowed.
The rules have changed for any donation of non-cash items to charitable
organizations after August 17, 2006.
A charitable contribution deduction of clothing or household items will
only be allowed if the item is in "good" used condition, or better, and
you have a receipt. The IRS is to issue guideline defining "good
condition." A good rule of thumb may be to write "good condition"
next to every donated item on your list.
The IRS can deny a deduction for any item that has little monetary
value. There is an exception for single items that have a value of more
than $500 and for which you have a qualified appraisal.
