Janitor Bob Posted February 27, 2009 Report Share Posted February 27, 2009 Despite my warnings, I have several clients who bring me a receipt from Goodwill with no dollar values and no description of the donated items....just a generic description such as "3 Boxes of women's clothing" clients then expect some type of charitable contribution for their Sch A. What do all of you do in this situation? Does't IRS now require more detail in this area? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 27, 2009 Report Share Posted February 27, 2009 I try and get them to make a list at time of donation but generally use 100-150 per bag depending on the clients lifestyle etc. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 27, 2009 Report Share Posted February 27, 2009 There is a web site that has a list of fmv for used clothing. I think it is Goodwill's site. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 27, 2009 Author Report Share Posted February 27, 2009 There is a web site that has a list of fmv for used clothing. I think it is Goodwill's site. I use that site often...problem is that neither client nor Goodwill specify what type of clothing was in the bags/boxes. I am wondering if my "estimate" (if I choose to use one) would hold up under IRS scrutiny if audited. Quote Link to comment Share on other sites More sharing options...
tilt Posted February 27, 2009 Report Share Posted February 27, 2009 Here's a nice list with some FMVs on it. I give it to my clients and insist that they keep the records.FMV_NonCash_Charity.xls Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 27, 2009 Report Share Posted February 27, 2009 I tried to get ahead of this problem this year but enclosing the "new" substantiation rules in the organizer and engagement letter packet. But I have always refused to guesstimate for clients. I provide some websites and printouts (they are quite old) and insist that the client determine the value and write it down, in their handwriting, for my records and theirs. Most of my folks now know better than to bring me a slip with a date and generic description. Some of my clients have castoffs better than my new items and some, well, you know! Quote Link to comment Share on other sites More sharing options...
Wayne Brasch Posted February 27, 2009 Report Share Posted February 27, 2009 There is a web site that has a list of fmv for used clothing. I think it is Goodwill's site. Try this website from Salvation Army and see what you think-http://www.satruck.com. Wayne Brasch Quote Link to comment Share on other sites More sharing options...
JRS Posted February 27, 2009 Report Share Posted February 27, 2009 The Tax Book and Quick Finders, both have a FMV guide. I also give a copy of the Tax Book list to my clients who ask that infamous "What do you think" question and they call me back with a figure. They might not use it, but a least I can say I gave them a reference point. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted February 27, 2009 Report Share Posted February 27, 2009 Because each piece of clothing is under the substation limit is another problem, err.. opportunity for you. Wow that will be a long list. Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 27, 2009 Report Share Posted February 27, 2009 But I have always refused to guesstimate for clients. Its a damn nuisance to have to deal with those goodwill and other charity slips. You can spend as much time fooling with that as it takes to prepare the rest of the tax return. Not only do I have to ask the client for a fair market value, but when you fill-out the form 8283 you have to show original purchase price which they never remember either. I have been know to overlook those damn things. :angry: Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 27, 2009 Report Share Posted February 27, 2009 Its a damn nuisance to have to deal with those goodwill and other charity slips. You can spend as much time fooling with that as it takes to prepare the rest of the tax return. Not only do I have to ask the client for a fair market value, but when you fill-out the form 8283 you have to show original purchase price which they never remember either. I have been know to overlook those damn things. Agree, it's a pain. I also make the taxpayer give me the amount. I do, however, enter "Various" for the purchase date. Most of the time that's correct anyway, with a bag of clothes, for example. I am so tired of them telling me "whatever is allowed," when I ask for an amount. I say, "What's 'allowed' is the FMV of your stuff." Then, they ask ME what I think their dadgum refrigerator was worth. Arghhh! Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 27, 2009 Report Share Posted February 27, 2009 I explain to them that FMV is whatever Goodwill, Salvation Army, etc. will sell them for and then tell THEM to give me a value. I use whatever value they give me (within reason). What else can you do? In case of an audit, they will be the one that will have to prove the deduction. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 27, 2009 Report Share Posted February 27, 2009 If its just one or two receipts, I'll ask them for a valuation. If it's $100 or so per receipt, then I note it on the receipt and move on. If they claim it's much larger, I give the receipts back to them and ask them to fill in an amount and initial it. If they've dropped off the info or mailed it to me, I scan the receipts & email the scan back to them with the same request. Return is on hold until I get the info back from them. I also email them a simple worksheet that tells them I need the original purchase price (or an estimate), date, etc for anything over $500 in a single day. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 28, 2009 Report Share Posted February 28, 2009 I make the clients give me the FMV. I do provide the Goodwill and Salvation Army web sites and Tax Book lists and sometimes some others if current. I do explain the meaning of FMV. I don't insist upon their writing or signature since more and more is done over the phone, but I try to ask the question via e-mail so I can print out a hard-copy of their answer. As far as purchase date and purchase price, I'll put Various and an amount 4-5 times the FMV once they give me the FMV. Yes, I try to get ALL the information from them, but if I get FMV from them, I'm happy enough. Quote Link to comment Share on other sites More sharing options...
Julie Posted March 1, 2009 Report Share Posted March 1, 2009 I explain to them that, as of August of 2007, they need more information than previously. The new law requires that they be able to show that the item is worth the claimed deduction, and that, if they are donating anything of real value, they should take pictures in advance. In addition, the new law requires that donated items be in "good used condition," and that items of minimal value (the law mentions "used underwear") are not deductible. Despite my warnings, I have several clients who bring me a receipt from Goodwill with no dollar values and no description of the donated items....just a generic description such as "3 Boxes of women's clothing" clients then expect some type of charitable contribution for their Sch A. What do all of you do in this situation? Does't IRS now require more detail in this area? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 2, 2009 Report Share Posted March 2, 2009 Hey JB, I think we all get this kind of stuff more often then we care to. I always tell my clients they have to assign the value to the items they donate. I explain the 500 limit and the need for the 8352 form (I think that is it), and then I direct them to my website to click on the link to the Salvation Army valutaion guide. If you would like, go to www.qptps.com and you can copy the link from there. I do apologize the website needs updating but I am the chief cook and bottle washer in my business and the luxury of time doesn't exist. Terry D. Quote Link to comment Share on other sites More sharing options...
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