One of the most common questions I get asked about on a client’s individual tax return is the amount of donations to an organization like Goodwill that is “acceptable?” I use the term “acceptable” loosely because I feel as if one should only claim a deduction if the deduction is actually made.
The conversation generally runs along the lines of:
Me: “Did you make any non-cash charitable donations to Goodwill, Big Brother/Big Sister, etc.?”
Client: “Yes, but I’m not sure how much?”
Me: “Did you get a receipt?”
Client: “I’m not positive where I would have put it if I did…”
If the above mentioned client were to get audited, the IRS agent would inquire as to what type of non-cash items were donated and the value of such donation. The majority of my clients donate clothing and household items; such as, kitchen appliances, furniture, etc. I never really know if my client’s truly understand the actual “Good Price” donation value that should be used for tax purposes. So just in case, I’ll attach the latest information from Goodwill Guide that was provided to me on my last visit: