Tax Tip of the Week | No. 228 | A Year-End Tip Worth Repeating
Tax Tip of the Week | December 11, 2013 | No. 228 | A Year-End Tip Worth RepeatingBefore Santa comes to visit, here is a year-end tax savings tip to consider:
Go through your house and garage and see what items you have not used in the last two years and donate them to charity. You can clean out space for all the new toys that are coming and receive a tax deduction for it!
The IRS requires that these non-cash donations must be in “good condition or better”. Furthermore, you can only deduct the Fair Market Value (FMV) of the items donated. The Salvation Army’s web site provides a guide that you can use to determine the FMV. You can view the guide by going to: http://www.thetaxdude.com/uploads/Salvation_Army_Valuation_Guide_for_Donated_Items.pdfIf the FMV exceeds $500 you will need to complete Form 8283 as part of your tax return. On this form you will need to list: name and address of the donee organization, date of the contribution, description of the items donated, FMV and the original cost of the items donated.If you donate a car, or have non-cash contributions exceeding $5,000 give us a call to discuss the details.We hope Santa is good to you this year while you take as many tax deductions as you can.
You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504. Or visit our website.
Rick Prewitt - the guy behind TTW
...until next week.