Noncash Charitable Contributions – Be Aware of Many Rules Amid Greater IRS Scrutiny
July 12, 2016 / in LWE in the News
It is common for taxpayers to donate property to charitable organizations. There are many important rules to be aware of when making noncash contributions – an area that the IRS is scrutinizing with greater focus.
Regardless of what type of property has been donated, the taxpayer is generally entitled to a deduction equal to the fair market value of the property at the time of the contribution. The most prevalent property donation involves clothing and household goods, whether donated to national organizations such as The Salvation Army and Goodwill Industries, or to local thrift shops and religious institutions. In order to claim a deduction for donations of clothing or household goods they must be in good used condition or better.