Don’t Make These Donation Deduction Mistakes!
Audio version available here:
Length: approx. 1 min. 15 sec.
Donating used items like clothing to a 501c3 non-profit organization like Goodwill is a great way to help out your community and at the same time benefit from taking a deduction while filing your tax return. However, the process of claiming these deductions is more than just getting a donation receipt from your 501c3. You must file Form 8283 to properly claim these deductions. If the value of the donated property is over $5000, it must be grouped and appraised by a qualified appraiser, not the organization you donated to. This may seem like an unnecessary hurdle, but attempting to skirt around this step by making several smaller donations will not earn you any favors from the IRS. In fact, you could end up losing deductions for not being in compliance. The key to navigating the world of maximizing tax deductions successfully is staying well-informed about the latest IRS rules and regulations. At XQ CPA, we take pride in assisting our clients in achieving the lowest possible tax liability while staying in compliance with the IRS. Reach out to us at 832-295-3353, or make an appointment here to get started on your tax journey: https://xqcpa-bookme.acuityscheduling.com/schedule.php, and stay up to date on the latest tax news and tips by following our social media.
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