Please keep in mind the new rules that began in 2006. That's a sure way to lose a deduction if audited. If the charity doesn't provide you with an itemized receipt, do one on your own and get someone from the organization to sign it. We found most prices clustered toward the low amount. By the way, the average price is a strict arithmetic average, intended only as another guide. Consider taking pictures of items with a high value, e.g., bridal gown, furniture in particularly good condition, etc. Make sure the receipt indicates the reason for a higher price (e.g., leather pants formal dress). Formal dresses and bridal gowns may be priced individually. Second, prices can vary depending on the area of the country. The new pair will probably command the high amount listed below. For example, one pair of jeans may be brand new, that is, never worn, while another may be used but in good condition (no stains, rips, etc.). Prices vary widely based on the original quality of the item, how in or out of style the item is, and condition. First, it's assumed that all items are in saleable condition. There are several points to keep in mind. You can use these as a guide to value property contributions to charitable organizations. We've visited a number of thrift shops in the New York and New England area and found the following range of prices for selected items. Small Business Taxes & Management -Copyright 1998-2021, A/N Group, Inc.
#Donate wedding dress tax deduction how to
If you have a question, here’s how to Ask The Taxgirl.Small Business Taxes & Management Valuation Guide for Charitable Contributions Remember, I’m a lawyer and we love disclaimers.
Good luck!īefore you go: be sure to read my disclaimer. I think it’s wonderful that you’re going to do something charitable with your dress rather than stuff it into a closet. I’d check with the charity directly for that one. With respect to the “processing fee”, I think it depends on the description and exact purpose of the fee.
#Donate wedding dress tax deduction pro
I’d ask your tax pro for their opinion but if it were me, I’d be inclined to say no to this one.
In this instance, technically the postage is for your convenience. you buy postage on your own dime for mailers). Out-of-pocket expenses as charitable deductions are generally associated with volunteer time (when you can’t take a deduction for the time) or when you incur fees for the convenience of the charitable organization (i.e. I think there *might* be an argument on the postage front as an out-of-pocket expense but, personally, it’s not an argument that I’d love to make considering the relatively small benefit. But you can claim them as a miscellaneous itemized deduction on Schedule A they will be subject to the 2% rule. Unfortunately, the fees for the appraisal are not deductible as a charitable contribution. Once cleaned or repaired, the value went up substantially. I’ve found this to be true with respect to a lot of artwork. The better an item looks, the higher it’s likely going to be valued. You can’t deduct the cost of dry cleaning the dress but I will say that I’d do that prior to an appraisal. I’m not sure what the value of the dress would be, but assuming that it’s over $500, you’ll want a written determination of the value of the dress (an appraisal will do). In this case, however, you will need a written acknowledgment from the charity and, quite possibly, an appraisal. Usually, you’ll opt for the “thrift store” value of the clothing – what you’d pay for the same item in a thrift store or on consignment. Usually, the fair market value of used clothing is considerably less than the original price. When it comes to clothing, the clothing must be in good used condition or better – it sounds like your dress is nearly perfect. Generally, you can deduct the fair market value of property donated to a qualified charitable organization.
Thanks for answering this question, I bet a lot of brides will appreciate your answer! If I send it to a charity, can I deduct the mailing cost? And can I deduct the cost of drycleaning it before I send it to the charity? Also, the charity resells the dresses at an auction/fundraiser and charges a $40 “processing” fee to help cover their expenses. Do I need it appraised? I still have the receipts. What do I need to do for tax purposes? I paid 1000 for it new and only wore it once. Like many women this year, I got married and now I would like to donate my dress to charity.
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