goodwill - 17 slips!

[WITAXLADY]

so she gave me a total - do I really have to input all 17 slips individually in the 8283?  - professional opinion please.

thx D

[Ringers]

I enter it on the 8283 as:

  Name:  Goodwill, Salvation Army and others (17 pickups)

Address:  various, zip code = same as in T/P address

Date of Donation: 12/31/16

 

Then put in the date of purchase (varioius), cost , FMV = Total, method = thrift shop pricing.

 

The only wrinkle is when the total FMV exceeds $5000, then you need to report as multiple donations to avoid the "appraisal" of used clothing and household items.

 

 

 

 

[WITAXLADY]

thank you

will correct and do!

[Terry D EA]

Yep gotta go with Ringers. I do the same thing and have been for many years and have never been question. Nevertheless, doesn't mean it can't happen.

[michaelmars]

I summarize them too into one

[SaraEA]

Just be careful that the client isn't using his or her cost instead of what the charity will sell them for.  Sometimes it's easy to pick up.  I just had a client who donated four pair of sneakers for $400.  I don't think Goodwill gets $100 for a used pair of sneakers.  Or the one who donated two bags of clothes valued at $1000.  Another gives entire bedroom and living room sets away every single year (valued at 10K+).  She must re-docorate her home on an ongoing basis.  I either call to make sure they are using FMV or just cut the listed amount to 10% of whatever they listed.  I usually enter each slip individually but draw the line at 10 or more and take the easy way out.

[Burke]

I print out the suggested FMV from the TaxBook and give it to them to do a detailed list.  Others also available online from Goodwill, Salvation Army, DONATE IT, etc.  I won't take "xx bags"  and "xx boxes."   Only took one year and all my regulars got it.  Now I get reasonable values and itemized lists.  Well, it took a few more than one year to get the message....

[jklcpa]

Reviving this with a question.  Client is retiring and downsizing to a much smaller house and said she is having to cut most of her personal belonging by about half before the move. She started in 2016 and gave away a lot, all to Goodwill, says the total just squeaked over $5K.

With multiple dates of contribution, because it is all to one organization, does she really need an appraisal and to complete Sec B of the 8283?  In the instructions it says to group similar items, so is clothing dissimilar enough to large pieces of furniture or other household goods, or is all that personal property considered similar enough that it must be grouped together?  Sorry if this is simple, but I've never had anyone try to claim this much and haven't had to ever deal with an appraisal, and don't want to now.   She asked for clarification for 2017 as well since her date of move is probably early summer.

I think her values are too high, told her to reevaluate the value of those items given, and will be sending her either the goodwill suggested value guide or the one from TTB.

So, can I still use only Sec A if I have multiple dates of contribution with some being clothing, some being furniture, etc.?

[easytax]

I do not have a cite --- but --- had several similar and did each by date. Total was in excess of 6,500 and not a problem. Mine had a different facility manager sign off on each date.

Given no individual items exceeded 500 there were no appraisals (mostly cloths, toys and small (current not antique) furniture).

It has been three years since first one and two last year --- all (so far) no concerns or questions, etc..

 

[jklcpa]

I found the answer that furniture is dissimilar from clothing from kitchen & dishwares, etc. Now I'll break down those contribs into their components so it should be obvious that no one group exceeds the threshold even though the total does.  I think that will work. Does anyone see a problem with this?

 

[jasdlm]

I read page 9 of Pub 561, 1/2 way down the left-hand side of the page, exactly as you state, Judy.  I would copy and paste the paragraph here, but my computer is disgusted with me right now and will not allow the same.

[jklcpa]

11 minutes ago, jasdlm said:

I read page 9 of Pub 561, 1/2 way down the left-hand side of the page, exactly as you state, Judy.  I would copy and paste the paragraph here, but my computer is disgusted with me right now and will not allow the same.

Thank you!  Silly me, I checked the A and 8283 instructions, and TTB, and hadn't gotten to the pubs yet.  Clients driving me crazy today.

[easytax]

23 hours ago, jklcpa said:

I think her values are too high, told her to reevaluate the value of those items given, and will be sending her either the goodwill suggested value guide or the one from TTB.

So, can I still use only Sec A if I have multiple dates of contribution with some being clothing, some being furniture, etc.?

Additional guide if you want (online or printable): Salvation Army:  https://satruck.org/Home/DonationValueGuide

   AND --- since you enjoy (????) pencils and there humor' she can do it in pencil too!!