Tax Software w/Calculators for non cash donations.

[AZ-Tax]

One of my new clients this year told me his TurboTax has a calculator that all he had to do is enter the description of his non cash item and it calculated the "thrift shop value" then auto enters them into the tax return.

Unless I missed something, I dont believe ProSeries has the feature which is odd since they also manf TT. Does your software have this feature?

[Nashville]

Doesn't Matter

This is some of the most non-productive work a tax preparer can do -- consult the tables for old shirts, shoes, toys, etc. And real world stuff - if you ask the client what's in those bags, he'll nearly always say "I dunno, but it was really nice stuff."

It may be a good and noble thing for govt to provide a tax deduction for bags of stuff taken to Salvation Army or Goodwill, I won't argue that. But it sorta gripes me when I ask for contribution information and they haven't given any cash to ANYONE, but they drag out a dozen Goodwill tickets leftover from spring cleaning and tell me they wanna deduct 19 bags worth of "stuff."

If I referred them to the "tables" mentioned herein, and demanded that they price out everything they put in those bags, they would pay me more in fees than any tax benefit it would bring them.

And the stories get worse if the deduction exceeds $500 and the special form is required. When I confront them with all the purchase data, etc. they simply just give up.

[Burke]

Unless I missed something, I dont believe ProSeries has the feature which is odd since they also manf TT. Does your software have this feature?

ATX does not have this. There are estimated value lists all over the place, DAV, Salvation Army, TTB, Junior Leagues, Goodwill ---- I wonder where TT gets theirs?

[JG EA]

I like the booklet the Tax Book has for sale. I give it to all my clients with non-cash donations.
That way they either fill in the info or figure it is too hard and don't count any. They all know now that just saying "bags" doesn't cut it.

[taxea]

determining the fmv of tp's donations is their job. my clients are trained that if they don't fill in the information the donation is not taken.

[FEDUKE404]

Reference is likely to "It's Deductible"

For several years TurboTax has included "It's Deductible" as part of their software. They may have even in the past bought the data base and whatever from an outside source??

In any case, Google the appropriate info and you will see there is even a "free" TT website that allows you access to (some of ?) the information.

Several of my clients have brought in printouts from such a data base. It has been my observation that the "high"/"low" amounts need to be scrutinized. I guess they are trying to compensate for the "value" of a used pair of pants in Iowa versus the same pair of pants donated in Beverly Hills??

I try not to put all of the burdens on my clients, who are respectful but not yet "trained." In virtually all cases, we will have some brief conversation as to the correctness of any non-cash donations to include the records/receipts for such.

FE

[joanmcq]

The Goodwill/Salvation Army guides on their websites DO take into consideration where the donations take place. There is always a range, and I explain that to clients, but in the end it tends to be the type of shop, rather than the goods themselves. I just got a brand new Pierre Cardin white men's shirt at a thrift shop for $2,80! Some shops cater to more high end stuff; for a while we had an offshoot of our big Salvation Army shop that sold the antiques and other nicer things that were donated.

It's deductible is pretty easy to use, and does force the client to keep a list of what was donated, which is required. But I'm suspicious of the 'high' values.

[taxea]

For several years TurboTax has included "It's Deductible" as part of their software. They may have even in the past bought the data base and whatever from an outside source??

In any case, Google the appropriate info and you will see there is even a "free" TT website that allows you access to (some of ?) the information.

Several of my clients have brought in printouts from such a data base. It has been my observation that the "high"/"low" amounts need to be scrutinized. I guess they are trying to compensate for the "value" of a used pair of pants in Iowa versus the same pair of pants donated in Beverly Hills??

I try not to put all of the burdens on my clients, who are respectful but not yet "trained." In virtually all cases, we will have some brief conversation as to the correctness of any non-cash donations to include the records/receipts for such.

FE

Was that "trained" a dig??? I provide my clients with a pretty detailed fmv sheet and feel that if they want the deduction it is worth their time to do the work necessary. It sure is cheaper than paying me to go through all their donaitons.

[newbie]

And don't forget to document it.

[DaveO]

I have the "conversation" with certain clients every year about valuing their stuff. I to get weary of claims of high value stuff being donated in the absense of any cash donations so I charge $35 for the 8283 one form per ticket.