4 Things You Can Donate for a Federal Tax Deduction 2015 – 2016
You can give cash to a tax-exempt organization to create a tax deduction on your IRS tax return. The amount of the deduction is the amount of the cash donated. But did you know you can also donate non cash items such as cars, furniture, and real estate? The trick is know the Fair Market Value of your non cash contributions so you know what your tax deduction is going to be. Here are 4 things you can donate to a tax-exempt organization for an IRS tax deduction.
- Your Old Car
Instead of getting just a few hundred or a few thousand dollars for your old car when you trade it in, why not turn that into a noncash contribution to your favorite charity? The fair market value (fmv) is easy to calculate: just use the Blue Book or other brands of car-valuing tools out there. Just use IRS Form 8283 to report your contribution and get the tax deduction.
- Your Nice Old Clothes
Vintage clothing is a hot thing these days. Do you have an early ’80′s Diane Von Furstenberg wrap dress in your closet that you’ll never wear again? There’s a fashionista out there who is willing to pay top dollar for your vintage clothing. Upscale vintage clothing stores who have tax-exempt status will accept donations and give you a receipt to use for tax records. Makes a nice deduction you didn’t even know you had!
On the other hand, your old sweatshirt or socks have little or no value and won’t give much tax deduction. Don’t try and donate old clothing that’s dirty or heavily worn out.
- A Chunk of Land
Even if nobody wants to buy your land, there are charitable organizations out there who buy up land just to preserve it and keep it natural. Your donation becomes a tax deduction.
- Antiques & Art
If you really need a tax deduction and you have antiques you inherited or whatever…art, etc, then you can donate them too and get tax savings. You will need to report on IRS Form 8283 how you acquired the property, how much it cost originally, and how you came up with the Fair Market Value. An appraiser can help you with most of the requirements of form 8283.
Before you file your tax return locate out if you may decrease your tax liability by taking qualified Federal Income Tax Deductions 2015 – 2016. It will be an excellent practice if you keep good records and you recognize what deductions to declare and save money during tax moment.