Price Clothing Donations on Income Tax
If you have clothing in your home that you no longer need or wear you can donate it to a charitable organization like Goodwill or the Salvation Army. Then you can deduct the fair market value of each item against the federal taxes that you owe to the IRS.
Instructions
1. Visit local area used clothing stores, such as Goodwill or Plato's Closet, to look for items similar to those donated. Take note of the price of the similar items in the used clothing stores. This would be the fair market value of the item. Fair market value is the price that a buyer would pay for the donated item in a normal market.
2. Use a valuation guide, such as the one at the Goodwill website. This type of guide gives fair market value amount for a variety of clothing items based on their condition.
3. Utilize "Its Deductible" in the TurboTax tax preparation software. This tool is available online and helps you value your donations. Just enter what you have donated and its condition and the tool will automatically calculate its fair market value for you.
Tags: market value, fair market, fair market value, Clothing Donations, Clothing Donations Income, clothing stores, Donations Income
