Yardley CPA Posted March 8, 2015 Report Share Posted March 8, 2015 I'm curious how you complete form 8283 on items like donation of clothes, shoes and housewares?. Is the amount you use as Fair Market Value the same as the Amount Claimed As Deduction? On items like clothing, shoes and housewares, I normally indicate the method to determine FMV as being Thrift Shop Value. Does anyone have an approximate percentage that reflects Thrift Shop Value? I've normally seen 15% to 20% of the cost or adjusted basis as being Thrift Shop Value. Thoughts? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 8, 2015 Report Share Posted March 8, 2015 google some charts, I believe goodwill and salvation army have them available 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 8, 2015 Report Share Posted March 8, 2015 Most taxpayers overstate the value of their donations by factors of 5 or more. I tell clients to value them for what they would buy them for at a garage sale. Not one cent more. This is what Thrift Shop Value is based on. I also inform them of the IRS requirements that they have an itemized list of what was given, the value assigned, and how they arrived at that amount. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 8, 2015 Report Share Posted March 8, 2015 My family shops a lot at those shops So I have a good idea on those prices. I also volunteer at local church reach out program. This gives me a good idea. I tell clients I want to see their list and values. Quote Link to comment Share on other sites More sharing options...
jshtax Posted March 9, 2015 Report Share Posted March 9, 2015 This area is like a golden ticket assuming you a valid receipt. What Jack said is correct and until the IRS requires receipts to document original cost this will always be a playground area. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 9, 2015 Report Share Posted March 9, 2015 I generally use 1/3 of the value... some of the sites actually will give a ridiculously high value and some way too low. I also recommend they take pics as they put in or at the very least a list and pics of the bags, boxes and items and get the receipt from the organization. Print the pics and put into their tax folder. They are quite receptive to that. "Generally" a big bag or big box is about $100 - price it out - unless coats, suits, fancy wear - then it is more. consider - childrens clothing less $$ but more in the box so from someone who donates - this is about average (and should do a ton more this May) D 2 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 10, 2015 Report Share Posted March 10, 2015 Aren't the values printed on your ceiling? That's where my clients seem to look for them. 5 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 11, 2015 Report Share Posted March 11, 2015 Aren't the values printed on your ceiling? That's where my clients seem to look for them.Yes, and on the inside edge of right shoe. Left for Methodists. I don't know why. 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 11, 2015 Report Share Posted March 11, 2015 (edited) Funny how highly some clients value their junk. Every now and then I'll ask one if they would pay that much for the items they describe if they saw it in a thrift shop. One (former client) gave me an especially revealing answer - they don't visit thift shops to buy, but the people who do would gladly pay that. Translation after taking into account their demeanor and overall snooty attitude - "It's beneath my dignity to buy it used, but at that price it's a bargain for the riff-raff." Edited March 11, 2015 by JohnH 4 Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted March 11, 2015 Report Share Posted March 11, 2015 "It's beneath my dignity to buy it used, but at that price it's a bargain for the riff-raff." What's really embarrassing is for the client to recognize the jacket you're wearing as one he donated. {I still have the jacket, but the client's son is now a CPA so I lost the client.} 5 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 11, 2015 Report Share Posted March 11, 2015 My favorite was the woman who donated a skirt to the local Goodwill, then a week later needed a skirt for an event we were going to and couldn't find one she liked, so she went back to Goodwill and bought her skirt back. I told her it would have been less trouble to just send Goodwill a check. 6 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 11, 2015 Report Share Posted March 11, 2015 I also recommend they take pics as they put in or at the very least a list and pics of the bags, boxes and items and get the receipt from the organization. Print the pics and put into their tax folder.They are quite receptive to that.One of the funniest stories I ever heard - an accountant friend recommended client take pictures of donated items. Client came in the following year with pictures of seven black garbage bags. 7 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 11, 2015 Report Share Posted March 11, 2015 Hey, Gail, did she pay the price that she valued it at on her tax return? 1 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 11, 2015 Report Share Posted March 11, 2015 (edited) She is pretty honest - I think she actually values every thing at about $1 per piece (or zero if it is not in great shape), and wound up paying $7 for the skirt. Edited March 11, 2015 by Gail in Virginia 3 Quote Link to comment Share on other sites More sharing options...
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