Charitable Contributions Valuation Guide 2011

Ten Tips for Taxpayers Making Charitable Donations

Every year, millions of taxpayers itemize their deductions on their federal tax return. One of the most common itemized deductions is a donation made to a charitable organization.

Here are the top ten things the IRS wants every taxpayer to know before deducting charitable donations.

1. Charitable contributions must be made to qualified organizations to be deductible. You can ask any organization whether it is a qualified organization and most will be able to tell you. You can also check IRS Publication 78, which lists most qualified organizations.

2. Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A.  

3. You generally can deduct your cash contributions and the fair market value of most property you donate to a qualified organization. Special rules apply to several types of donated property, including clothing or household items, cars and boats.  

4. If your contribution entitles you to receive merchandise, goods, or services in return – such as admission to a charity banquet or sporting event – you can deduct only the amount that exceeds the fair market value of the benefit received.  

5. Be sure to keep good records of any contribution you make, regardless of the amount. For any contribution made in cash, you must maintain a record of the contribution such as a bank record – including a cancelled check or a bank or credit card statement – a written record from the charity containing the date and amount of the contribution and the donor’s name, or a payroll deduction record.  

6. Only contributions actually made during the tax year are deductible. For example, if you pledged $500 in September but paid the charity only $200 by Dec. 31, your deduction would be $200.

7. Include credit card charges and payments by check in the year they are given to the charity, even though you may not pay the credit card bill or have your bank account debited until the next year.

8. For any contribution of $250 or more, you must have written acknowledgment from the organization to substantiate your donation. This written proof must include the amount of cash and a description and good faith estimate of value of any property you contributed, and whether the organization provided any goods or services in exchange for the gift.  

9. To deduct charitable contributions of items valued at $500 or more you must complete a Form 8283, Non-cash Charitable Contributions, and attached the form to your return.  

10.An appraisal generally must be obtained if you claim a deduction for a contribution of non-cash property worth more than $5,000. In that case, you must also fill out Section B of Form 8283 and attach the form to your return.

CAR DONATIONS

FORM 1098-C REQUIRED: Taxpayers cannot claim any deduction above $500 for donated vehicles, boats or airplanes unless the recipient charity provides an acknowledgement on form 1098-C. The form must be provided within 30 days of the sale. Donor must attach Copy-B of Form 1098-C to their Form 1040. When taxpayer’s non-cash charitable donation exceeds $500, Form 8283 must also be filed with Form 1040. For charitable contributions of motor vehicles, boats and airplanes in excess of $500, the deduction amounts depends on how the donated vehicle is used by the charitable organization. 

· Outright sale. If the organization sells the vehicle without using it significantly for charitable purposes or making material improvements, the deduction is generally limited to the gross proceeds from the sale.

The gross sale proceeds amount is reported on line 4c of form 1098-c

· Transferred to needy individual. The sale-proceeds limitation doesn’t apply if the charity sells or transfers the vehicle to a needy individual for below FMV. In this case the donor can generally deduct the FMV of the vehicle as of the contribution date. The charity will indicate when this exception applies by checking box 5b on form 1098-c.

· Significant use or material improvements. The sale proceeds limitation also doesn’t apply if the charity keeps the donated vehicle and uses it significantly for charitable purposes or makes material improvements before ultimately selling it. In these cases, the donor can generally deduct the FMV of the vehicle as of the contribution date. The charity will indicate when one of these exceptions applies by checking box 5a on for 1098-c and describing the significant use or material improvement on line 5c.

Appliances	Low	High	# of Items	Assigned Value	Total Value
Air Conditioner	$20.00	$90.00
Dryer	$45.00	$90.00
Electric Stove	$75.00	$150.00
Gas Stove	$50.00	$125.00
Heater	$7.50	$22.00
Microwave	$10.00	$50.00
Refrigerator (working)	$75.00	$250.00
T.V. (color, working)	$75.00	$225.00
Washing Machine	$40.00	$150.00
Children's Clothing	Low	High	# of Items	Assigned Value	Total Value
Blouse	$2.00	$8.00
Boots	$3.00	$20.00
Coat	$4.50	$20.00
Dress	$3.50	$12.00
Jacket	$3.00	$25.00
Jeans	$3.50	$12.00
Pants	$2.50	$12.00
Shirt	$2.00	$6.00
Shoes	$2.50	$8.75
Skirt	$1.50	$6.00
Slacks	$2.00	$8.00
Snowsuit	$4.00	$19.00
Socks	$0.50	$1.50
Sweater	$2.50	$8.00
Underwear	$1.00	$3.50
Men's Clothing	Low	High	# of Items	Assigned Value	Total Value
Jacket	$7.50	$25.00
Overcoat	$15.00	$60.00
Pajamas	$2.00	$8.00
Raincoat	$5.00	$20.00
Shirt	$2.50	$12.00
Shoes	$3.50	$25.00
Shorts	$3.50	$10.00
Slacks	$5.00	$12.00
Suit	$15.00	$60.00
Sweater	$2.50	$12.00
Swim Trunks	$2.50	$8.00
Tuxedo	$10.00	$60.00
Undershirt	$1.00	$3.00
Undershort	$1.00	$3.00
Furniture	Low	High	# of Items	Assigned Value	Total Value
Bed (full, queen, king)	$50.00	$170.00
Bed (single)	$35.00	$100.00
Bedroom Set (complete)	$250.00	$1,000.00
Carriage	$5.00	$100.00
Chair (upholstered)	$25.00	$100.00
Chest	$25.00	$95.00
China Cabinet	$85.00	$300.00
Clothes Closet	$15.00	$50.00
Coffee Table	$15.00	$65.00
Crib (w/mattress)	$25.00	$100.00
Desk	$25.00	$140.00
Dining Room Set (complete)	$150.00	$900.00
Dresser w/Mirror	$20.00	$100.00
End Table	$10.00	$50.00
Folding Bed	$20.00	$60.00
Furniture (Con't)	Low	High	# of Items	Assigned Value	Total Value
Hi Riser	$35.00	$75.00
High Chair	$10.00	$50.00
Kitchen Cabinet	$25.00	$75.00
Kitchen Chair	$2.50	$10.00
Kitchen Set	$35.00	$170.00
Mattress (double)	$12.50	$75.00
Mattress (single)	$15.00	$35.00
Playpen	$3.75	$30.00
Rugs	$20.00	$90.00
Secretary	$50.00	$140.00
Sleeper Sofa (with mattress)	$85.00	$300.00
Sofa	$35.00	$200.00
Trunk	$5.00	$70.00
Wardrobe	$20.00	$100.00
Household Goods	Low	High	# of Items	Assigned Value	Total Value
Bakeware	$1.00	$3.00
Bedspread/Quilt	$3.00	$24.00
Blanket	$3.00	$15.00
Chair/Sofa Cover	$15.00	$35.00
Coffeemaker	$4.00	$15.00
Curtains	$1.50	$12.00
Drapes	$6.50	$40.00
Fireplace Set	$20.00	$80.00
Floor Lamp	$6.00	$50.00
Glass/Cup	$0.50	$1.50
Griddle	$4.00	$12.00
Kitchen Utensils	$0.50	$1.50
Lamp	$5.00	$75.00
Mixer/Blender	$5.00	$20.00
Picture/Painting	$5.00	$200.00
Pillow	$2.00	$8.00
Household Goods (Con't)	Low	High	# of Items	Assigned Value	Total Value
Plate	$0.50	$3.00
Pot/Pan	$1.00	$3.00
Sheets	$2.00	$8.00
Throw Rug	$1.50	$12.00
Towels	$0.50	$4.00
Miscellaneous	Low	High	# of Items	Assigned Value	Total Value
Answering Machine	$10.00	$30.00
Bicycle	$5.00	$80.00
Board Game	$1.00	$3.00
Book (paperback)	$0.75	$1.50
Book (hardback)	$1.00	$3.00
CD	$2.00	$5.00
Computer Monitor	$5.00	$50.00
Computer Printer	$5.00	$150.00
Computer System	$100.00	$400.00
Copier	$40.00	$200.00
DVD	$2.00	$5.00
DVD Player/VCR	$8.00	$15.00
Edger	$5.00	$25.00
Golf Clubs	$2.00	$25.00
Ice Skates	$3.00	$15.00
Luggage	$5.00	$15.00
Mower	$25.00	$100.00
Mower (riding)	$100.00	$300.00
Radio	$7.50	$50.00
Roller Blades	$3.00	$15.00
Sewing Machine	$15.00	$85.00
Stereo	$15.00	$75.00
Stuffed Animal	$0.50	$1.00
Tennis Racket	$2.00	$5.00
Typewriter	$5.00	$25.00
Vacuum Cleaner	$15.00	$65.00
Women's Clothing	Low	High	# of Items	Assigned Value	Total Value
Bathing Suit	$4.00	$12.00
Bathrobe	$2.50	$12.00
Blouse	$2.50	$12.00
Boots	$2.00	$5.00
Bra	$1.00	$3.00
Coat	$10.00	$40.00
Dress	$4.00	$20.00
Evening Dress	$10.00	$60.00
Foundation Garment	$3.00	$8.00
Fur Coat	$25.00	$400.00
Fur Hat	$7.00	$15.00
Handbag	$2.00	$20.00
Hat	$1.00	$8.00
Jacket	$4.00	$12.00
Nightgown	$4.00	$12.00
Pants Suit	$6.50	$25.00
Shoes	$2.00	$25.00
Skirt	$3.00	$8.00
Slacks	$3.50	$12.00
Slip	$1.00	$6.00
Socks	$0.50	$1.25
Suit	$6.00	$25.00
Sweater	$3.75	$15.00
TOTAL:
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All appliances, electronics and equipment assumed to be working, and all clothing and furniture in good condition.