E. Ronald Hixon, P.C.
33 S. Water St.
Hummelstown, PA 17036

Business Accounting
Tax & Payroll Services

 Telephone
  717-566-7076
  FAX
  717-566-7125
  E-Mail
 
 

Donations Other Than Cash

 Enclosed please find a guidesheet (based on "Goodwill/ Salvation Army-type estimates") as to the approximate fair market value of various items you may have donated to charities.  It lists a relatively conservative high and low dollar amount you may wish to use as a 2000 guide for taking an itemized deduction under the charitable donations section.

What exactly is "Fair Market Value?"  In effect, it is the re-sale value of the item, or what a given buyer would pay for the item in its given state.  This value is based on such issues as its physical condition, its age, and if it has any antique value.

 Thus, the difference between the high and low fair market value figures represents the difference in condition of the item donated:

                   Items that are in good to excellent condition may qualify for the higher figure                   while those in fair to poor condition would list at the lower figure.

These donations can add up to a significant itemized deduction, so you should keep this as a handy reference for current and future donations.

IRS Recordkeeping Requirements

In the event of an audit, the IRS can require various types of proof in order for you to qualify for this type of donation.  According to IRS Publication 526, you should be prepared to provide the following:

                  A detailed list of the items donated, and their condition.

                  Name and address of organization to which you made the donation.

                  Proof of receipt of the items from the charitable organization.

Usually, you provide a list of all items when you make the donation, and the organization will stamp and date this list so you can use it for your tax return.

Any single item you are donating that has a fair market value of $500 or more requires further detail.  You must also state how the item was acquired(bought, inherited, etc.), when it was acquired, how much it originally cost, and the method you used to determine fair market value. Any item with a claimed value of more than $5,000 requires an appraisal that the IRS would deem acceptable.

A Tip To Reduce Your Chance Of An Audit In This Area

If you will be claiming significant deductions for donations other than cash, a copy of the detailed list of items, along with proof of receipt from the charity can go a long way toward heading off an IRS inquiry here, along with any required appraisals. The list does not have to be typed or computerized.  A legible, handwritten, itemized list will do nicely.

2000 GUIDELINES

LADIES CLOTHING                      LOW           HIGH                          FURNITURE                           LOW           HIGH

Blouse                                           2.50              7.50                          Air Conditioner                    20.00          45.00

Bathrobes                                     2.50              9.50                          Bed Complete (dbl)            50.00          145.00

 Boots                                           2.00             4.50                          Bed Complete (sgl)            35.00          85.00

Bras                                               1.00              3.00                          Bicycles                                15.00          45.00

Bathing Suits                                 4.00             7.50                          Chest                                    25.00          45.00

Coats                                          10.00         17.00                          Clothes Closet                    15.00          35.00

Dresses                                        4.00           15.00                          China Cabinet                     85.00       150.00

Evening Dresses                        10.00         55.00                          Convertible Sofa                 85.00       150.00

Fur Hats                                        7.00           12.00                          Crib w/ mattress                 25.00          75.00

Fur Coats                                      25.00         70.00                          Carriage                                  5.00       100.00

Foundation Garment                  3.00              8.00                          Coffee Table                        15.00          45.00

Handbags                                     2.00           10.00                          Dresser w/ mirror               20.00          85.00

Hats                                               1.00              5.00                          Desk                                      25.00       125.00

Jackets                                          4.00              8.00                          Dryer                                      45.00          85.00

Nightgowns                                  4.00              8.50                          End Tables (2)                    10.00          25.00

Pants Suit                                      6.50          10.00                          Floor Lamps                          7.50          25.00

Socks                                             0.40              1.25                          Folding Beds                       20.00          45.00

Suits                                               6.00           30.00                          Gas Stove                             50.00       125.00

Shoes                                            2.00              5.00                          Heaters                                   7.50          22.50

Skirts                                              3.00              7.00                          High Chair                            10.00          35.00

Sweaters                                       3.50              2.50                          Hi Riser                                35.00          60.00

Slips                                               1.00              4.50                          Kitchen Chair                         2.50            7.00

Slacks                                            3.50              7.50                          Kitchen Cabinets                25.00          75.00

                                                                                                             Mattress (dbl)                      20.00          50.00

                                                                                                              Mattress (sgl)                      15.00          35.00

MENS CLOTHING                         LOW           HIGH                      Play Pen                             7.50          20.00

                                                                                                      Rugs                                     20.00          75.00

Jackets                                           7.50           15.00                       Refrig. (working)                 35.00       125.00

Over Coats                                    15.00         40.00                        Radio                                   7.50       50.00

Pajamas                                         2.00              2.50                       Sewing Machine                15.00        75.00

Pants-Shorts                                   3.50             6.50                         Studio Couch                    35.00        85.00

Raincoats                                       5.00           12.00                         Secretary                           50.00      125.00

Suits                                              15.00         45.00                        Sofa                                    35.00         85.00

Slacks                                             5.00           10.50                         TV (B/W working)                25.00         60.00

Shirts                                              2.50           10.50                         TV (color working)               75.00       225.00

Sweaters                                        2.50              8.50                         Trunk                                   5.00         22.50

Shoes                                            3.50           10.50                         Typewriter                            7.50         22.50

Swim Trunks                                  2.50              5.50                         Upholstered Chair             25.00        55.00

Tuxedo                                        10.00            35.00                        Vacuum (working)                  10.00        35.00

Under Shirts                                   1.00              2.50                          Washing Machine               35.00       125.00

Under Shorts                                 1.00              3.50                          Wardrobe                             20.00        60.00

 

CHILDRENS CLOTHING              LOW           HIGH                           DRY GOODS                         LOW           HIGH

Blouses                                         2.00              6.00                          Blankets                                 2.50            6.50

Boots                                             3.00           10.50                          Bed Spreads                          3.00         12.00

Coats                                             4.50           12.50                          Chair Covers                        15.00           3.50

Dresses                                          3.50           10.50                            Curtains                                  1.50          4.50

Jackets                                          3.00           18.00                           Drapes                                    6.50         15.50

Jeans                                             3.50              8.50                         Pillows                                    2.00           6.00

Pants                                             2.50              8.50                        Sheets                                     2.00         5.50

Snow Suits                                    4.00              8.50                         Throw Rugs                             1.50          4.50

Shoes                                            2.50              8.75                        Towels                                    0.50          2.50

Skirts                                              1.50              4.50

Sweaters                                        2.50              6.00                          COMPLETE SETS                LOW           HIGH 

Slacks                                            2.00              6.00

Shirts                                             2.00              4.50                          Bedroom Set                     250.00       800.00

Socks                                              0.50             1.50                          Dining Room Set              150.00       650.00

Underwear                                    1.00              3.50                           Kitchen Set                         35.00       125.00

 

   
 
 
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