Donations Question

Need some advice.

I donate coupons, samples, and free stuff to the Humane Society once or twice a month.

They are grateful and want to give me a donation slip. I always pass, but should I be taking one? I don't think I am doing much, but they keep offering.

Any help appreciated.

They're offering you a slip because the value of what you donate is tax deductible. So, if you want to claim it on your taxes, you need the slip as proof of the donation.

I understand that, but what I am donating was free to me. Then there are the coupons. Should I take off my coupon cutting time and organizing on my taxes?

If you want to. I donate things to the womens shelter here, and the humane society, and I do file it, I NEED the deduction..

Thanks!

I never thought to do a deduction on this stuff to the humane society. However, they keep asking so it got me thinking.

I could defiantly use the deduction.

So my last question on the subject. How do you figure out the "value"?

Make a rough estimate of what it would cost the shelter to buy it new. In the case of the coupons, just count them as the value of the newspaper you clipped from, plus a half hour's wages for clipping. That would be fair I think. But take a snapshot of what you give. You don't even have to print it out. Just save it in a file on your computer. When tax time comes, show it to your tax preparer or if you do them yourself keep it as evidence of the value in case you get audited.

Sounds like an iffy situation... go to the IRS web site and search out the topic of donating to charities... I'd be real careful about it...

some CPA's will tell you that time, money, goods, etc are all deductable. Some will only do $.

If you donate clothes to goodwill they offer you a reciept, well these are clothes that you personally would just throw away, if there was no needy recpient- essentially thereby making them trash. BUT the govt accepts them as a valid donation.

You can deduct donations of time and goods. And according to the tax law, you deduct the "fair market value". That means what the item typically would cost in the condition it's in. You're donating new samples, so you'd value them at the new cost for the sample or travel size. And you're donating your time cutting coupons so you get to decide what that time is worth for unskilled labor. You can't charge $200 an hour even if you're an attorney since the labor you're donating is unskilled. But you can charge normal wages.

When I have made and donated Quilts I charge the cost of the fabric X4, that is for my time. I figure that is generally what I charge to make a quilt for someone, so that is what it is worth.

One time I went to the Salvation Army and donated several boxes of stuff at the side door. Walked around into the store itself and paid like $6 for a pair of old black rubber boots. My youngest needed them for a Dexter (the cartoon kid, not the serial killer) costume for Halloween. So heck yes there's a value on those items you donate.

ack- speaking of which, I need to go and get Brett and dress coat for halloween so he can be frankenstien... wonder if I bring in some clothes they'll let me trade? LOL