idodishez Posted October 10, 2011 Report Share Posted October 10, 2011 Anyone know exactly how it works? Going to be donating a lot of household goods, rather than moving them. Clothes, books, electronics. Etc. How specifically does this translate financially to me? Quote Link to comment Share on other sites More sharing options...
chevysoldier Posted October 10, 2011 Report Share Posted October 10, 2011 Don't donate to Goodwill. They won't remove their "no gun" signs. I have nothing to add as far as tax benefits go.... Quote Link to comment Share on other sites More sharing options...
madcat6183 Posted October 10, 2011 Report Share Posted October 10, 2011 If you get a receipt you enter that on your taxes, if you dont you just make up whatever you think you donated. On tax programs i.e. turbotax it will even give you like a dollar value based on what it is. I never get receipts and just guesstimate what I've donated. Like I think polo's are 2.00, suits are 12.00, etc.I usually write off a few hundred dollars of clothes/household goods every year. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted October 10, 2011 Report Share Posted October 10, 2011 ...And if you're upset at Chevy for not answering your question, you can always donate your guns to Goodwill... that'd be a REALLY good way to stick it in Chevy's craw.You writeoff the fair market value of the goods you donate. Get a receipt from wherever you donate from, or just claim it on your taxes and hope you don't get audited. $15,000 worth of "crap" would probably get the IRS's attention. $300 for a TON of stuff, not so much. Quote Link to comment Share on other sites More sharing options...
chevysoldier Posted October 10, 2011 Report Share Posted October 10, 2011 ...And if you're upset at Chevy for not answering your question, you can always donate your guns to Goodwill... that'd be a REALLY good way to stick it in Chevy's craw.You writeoff the fair market value of the goods you donate. Get a receipt from wherever you donate from, or just claim it on your taxes and hope you don't get audited. $15,000 worth of "crap" would probably get the IRS's attention. $300 for a TON of stuff, not so much.I see how it is. Quote Link to comment Share on other sites More sharing options...
Disclaimer Posted October 10, 2011 Report Share Posted October 10, 2011 It's not like he's donating M&Ps... so Goodwill can have all the crap guns they want. Quote Link to comment Share on other sites More sharing options...
idodishez Posted October 10, 2011 Author Report Share Posted October 10, 2011 ...And if you're upset at Chevy for not answering your question, you can always donate your guns to Goodwill... that'd be a REALLY good way to stick it in Chevy's craw.You writeoff the fair market value of the goods you donate. Get a receipt from wherever you donate from, or just claim it on your taxes and hope you don't get audited. $15,000 worth of "crap" would probably get the IRS's attention. $300 for a TON of stuff, not so much.So to translate to actual dollars.... For example: I donate $100 worth of stuff. That doesnt mean I have the equivalent of $100 in my pocket. I claim that on my taxes as a deduction, and it's deducted from my taxable income at whatever tax bracket I'm in. For example sake, let's say I'm in a 25% tax bracket. How does that $100 donation translate to actual dollars? I'm asking because I'm going to be donating a few pallets of electronics that could potentially be worth thousands. So I'm trying to determine the financials with this verses taking time to try and sell outright. Quote Link to comment Share on other sites More sharing options...
idodishez Posted October 10, 2011 Author Report Share Posted October 10, 2011 Don't donate to Goodwill. They won't remove their "no gun" signs. I have nothing to add as far as tax benefits go....Wouldn't donate to goodwill anyway. It was just for example sake. I see then as nothing more than a garage sale w things that people just gave then to sell for free. I'd much rather donate to salvation army, St Vincent, etc where the needy actually benefit from it Quote Link to comment Share on other sites More sharing options...
chevysoldier Posted October 10, 2011 Report Share Posted October 10, 2011 It's not like he's donating M&Ps... so Goodwill can have all the crap guns they want. Quote Link to comment Share on other sites More sharing options...
chevysoldier Posted October 10, 2011 Report Share Posted October 10, 2011 Wouldn't donate to goodwill anyway. It was just for example sake. I see then as nothing more than a garage sale w things that people just gave then to sell for free. I'd much rather donate to salvation army, St Vincent, etc where the needy actually benefit from itI actually had some clothing I was going to donate to them. I was going to ask them where to take the stuff but when I got to the front door, I saw their sign that said they didn't want my donation. After emailing the store I was referred to their corporate email. I never got a reply back from them. Oh well. Quote Link to comment Share on other sites More sharing options...
ohdaho Posted October 10, 2011 Report Share Posted October 10, 2011 So to translate to actual dollars.... For example: I donate $100 worth of stuff. That doesnt mean I have the equivalent of $100 in my pocket. I claim that on my taxes as a deduction, and it's deducted from my taxable income at whatever tax bracket I'm in. For example sake, let's say I'm in a 25% tax bracket. How does that $100 donation translate to actual dollars? I'm asking because I'm going to be donating a few pallets of electronics that could potentially be worth thousands. So I'm trying to determine the financials with this verses taking time to try and sell outright.Its extremely beneficial if you're in between tax brackets, making enough donations this year could drive your taxable income down a bracket hence saving you money. Quote Link to comment Share on other sites More sharing options...
Scruit Posted October 10, 2011 Report Share Posted October 10, 2011 (edited) 1) Gather items to donate2) Make a list of what is in there3) Donate (Ask for receipt)4) Save receipts until tax time5) When filling out taxes, use the list of items to come up with a dollar figure of what the charity will sell them for (hence, the amount of value you gave to the charity). TurboTax will let you look up values for common items.6) Comeplete taxes with total dollsr figure of all donations7) Save receipts in case you are audited. Don't send them with your taxes.It is up to you to come up with values - be warned that you could trigger an audit if your donations are disproportionately high. If you donate a car the new rules are that the charity must send you a letter by the end of the year telling you that they either sold/disposed of the car (and how much they got in the sale / scrap value) or stating that they are using it for their charity work. If it needs repairs before it can be used then they will tell you how much that cost. If they keep and use the car then you can claim the value of the car (I used NADA book value) - cost of repairs.I donated a car about 4 years ago. They kept it, put new rotors on it and send me a letter saying as much. I claimed the NADA book value - $200 for the rotors. I donated to Goodwill becuase they have their GoodWheels to Work program that loans cars to people who's only barrier to getting a job is not having a car. This means that if the car is a runner then you know it will be used by the carity and you can claim book value. Whatever money you "claim back" on taxes is subtracted from your income before the tax rate is figured out. If you are in the 25% tax bracket and you donate $1000 worth of goods then you don't pay tax on that $1000, saving you $250. Sometimes it can drop you a tax bracket so you save that @250 plus a little more (maybe it drops to you 24%, etc)Don't look at donations as an investment unless you are, or have, an accountant. For normal people it's just a way of motivating donation rahter then throwing old stuff out. Edited October 10, 2011 by Scruit Quote Link to comment Share on other sites More sharing options...
idodishez Posted October 10, 2011 Author Report Share Posted October 10, 2011 1) Gather items to donate2) Make a list of what is in there3) Donate (Ask for receipt)4) Save receipts until tax time5) When filling out taxes, use the list of items to come up with a dollar figure of what the charity will sell them for (hence, the amount of value you gave to the charity). TurboTax will let you look up values for common items.6) Comeplete taxes with total dollsr figure of all donations7) Save receipts in case you are audited. Don't send them with your taxes.It is up to you to come up with values - be warned that you could trigger an audit if your donations are disproportionately high. If you donate a car the new rules are that the charity must send you a letter by the end of the year telling you that they either sold/disposed of the car (and how much they got in the sale / scrap value) or stating that they are using it for their charity work. If it needs repairs before it can be used then they will tell you how much that cost. If they keep and use the car then you can claim the value of the car (I used NADA book value) - cost of repairs.I donated a car about 4 years ago. They kept it, put new rotors on it and send me a letter saying as much. I claimed the NADA book value - $200 for the rotors. I donated to Goodwill becuase they have their GoodWheels to Work program that loans cars to people who's only barrier to getting a job is not having a car. This means that if the car is a runner then you know it will be used by the carity and you can claim book value. Whatever money you "claim back" on taxes is subtracted from your income before the tax rate is figured out. If you are in the 25% tax bracket and you donate $1000 worth of goods then you don't pay tax on that $1000, saving you $250. Sometimes it can drop you a tax bracket so you save that @250 plus a little more (maybe it drops to you 24%, etc)Don't look at donations as an investment unless you are, or have, an accountant. For normal people it's just a way of motivating donation rahter then throwing old stuff out.Thanks. Looks like I somewhat understood it correctly. Not an investment. I just HATE letting stuff go for free (throwing away) when I know it has value to it if I had "the right buyer". But if I'm giving it away, I feel much better than throwing it away. It's going to someone who needs it and not a landfill. Quote Link to comment Share on other sites More sharing options...
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