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The new charity deduction

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    The new charity deduction

    Most of my customers have finally got the message to quit bringing me tickets from Goodwill since the enhanced standard deduction made them worthless.

    I have some wealthy people who don't give a dime to charity but every spring when the wife replaces her wardrobe, she cleans house and takes stuff to GoodWill. And of course, presents me with a half-dozen or so tickets with no value on them. To hear them talk, the clothes are worth thousands of dollars and are in mint condition, as well as the old washer/dryer which was without a scratch and working perfectly. They just wanted another washer/dryer, they say.

    I do tell them we need purchase detail of every piece if we claim over $500 and you can just see the disappointment sweep over their face.

    Now we have a $300 deduction for non-itemizers. And I can just see all these tickets again. Again, I'll have to explain this is cash only, and of course they'll tell me it will be a slam dunk.

    I plan to ask for enough recipient detail to establish $300. Otherwise it will be the same as the $250 classroom teacher deduction - an automatic.

    #2
    Originally posted by Snaggletooth View Post
    the enhanced standard deduction made them worthless.

    I agree Snaggletooth with most client unable to itemize for Federal, unfortunately in Oregon
    the standard deduction for MFJ is $4,630 and $3,515 for Single, so we end up itemizing
    for Oregon tax returns. So they keep bringing the Goodwill tickets.

    Comment


      #3
      Yes, while the $ 300 AGI deduction is here - as Snaggs said these clients don't want to hear about "cash only".
      There were a few times over the years - I went down to Goodwill Industries that has a donation drop place adjacent to the retail store - and I handed the clerk an itemized list of what I was donating with my name and address on it for him to rubber stamp. He didn't want do to it. What he did though was take my name, typed it into his computer, and what was written on the receipt was "3 bags".

      My most memorable case with a client took place years ago. One year while getting his tax info - I advised him of how to document non-cash items. Before donating - take pictures of what you are donating before giving the stuff away. Next year he came back with a photo of stuffed plastic garbage bags.
      Uncle Sam, CPA, EA. ARA, NTPI Fellow

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        #4
        I tried doing clothing for 300 and my program gave no 300 above the line. When I put it in cash/check it reported 300 above the line....
        This post is for discussion purposes only and should be verified with other sources before actual use.

        Many times I post additional info on the post, Click on "message board" for updated content.

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          #5
          Because only cash contributions count.

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