If you donate property to Ghadef such as clothing, electronics, or furniture, you need to determine how much it is worth when you donate it. The basic rule is that you may deduct no more than the property’s “fair market value” at the time of the donation.
- For a donation worth less than $250, you need a receipt from the charity.
- For donated non-cash item worth $250 to $5,000, you will need a written acknowledgment from Ghadef that meets IRS guidelines.
- For donated non-cash item worth $501 to $5,000, you will need a written acknowledgment from Ghadef with written evidence that supports the item’s acquisition date and its fair market value.
- Total non-cash donations for the year exceeding $500 will require you fill out Form 8283 (Non-cash Charitable Contributions).
- For a non-cash item worth over $5,000, in addition to above, you will need a written qualified appraisal.
- For donated clothing and household items, you can only claim deductions for stuff that is in “good condition or better.”
- Special restrictions apply to donations of vehicles, planes, and boats.