We are nearing the end of the tax year and it’s time for your last minute charitable donations.  If you are planning on taking a charitable deduction via Schedule A and wanting to donate property “non-cash” items, here are the rules:

1.  The organization receiving your donation must be qualified:  religious, charitable, educational, scientific, literary, or prevention of cruelty to kids/animals.
2.  For all non-cash contributions you need to keep documentation regarding the donation detailing:
   1. name of organization
   2. date/location of contribution
   3. description of property
3. Non-Cash donations fall under 4 categories:
   1. under $250:  all the above info and how you arrived at the value
   2. over $250 and less than $500:  all the above with receipt from organization
   3. over $500 and less than $5000:  all the above + receipt from org + records that include how your acquired property, when and the cost
   4. over $5000:  everything included in items 1-3 above + qualified written appraisal of property.

Bottom line, even if you drop off goods at Goodwill you will need a receipt, description and valuation.  The IRS has disqualified charitable donations because of lack of taxpayer documentation/records so make sure you can substantiate all your donations.

NOTE:  Take a picture when you drop off goods and put that in your files as another record.