Disaster Relief – Deductible Donations

In light of the flooding disaster that has struck our neighbors in Louisiana and left thousands in need of the basics, here are some donatable items that are also tax deductions:

1. Furniture: Consider donating your couch or bed when you buy a new one, or perhaps finally get rid of the armchair that didn’t fit in your living room and now lives in the garage. Keep in mind, household goods must be in good used condition or better to qualify for a tax deduction.
2. Clothing: Lost weight? Child growing like a weed? Clothing must be in good condition but donating is deductible and helps keep you organised!
3. Electronics: From that keyboard that is collecting dust in your kid’s room to that iPod you never use anymore, you can donate! As long as the item is still in working condition, it can be written off.
4. Kitchenware: Clear out those old kitchen items that you never use, like dishes, pots/pans, and kitchen utensils. The “mismatched” dinnerware look is in, so plates are usually in high-demand. These are all are tax deductible when you donate them.
5. Your Car: Many charities accept cars as a tax-deductible donation! Ensure the charity is a qualified organization with the IRS first. The maximum amount you can deduct on your tax return is the fair market value of your car, meaning the price a willing buyer would pay and a willing seller would accept for the car. Be sure to review all of the IRS recordkeeping and filing requirements ahead of time and speak with your local Dallas CPA firm about any questions.

Remember, anything helps!  Not only does donating help now, tax deductions can save you money to make more donations in the future!