Tax-Deduction Tip: Non-cash Donation

Budget Planning Talk >>

Call for action!  If you do not want to donate cash or stocks. It is ok.  End of year would be the best time of the year to do ourselves and others a favor. Donate new/used clothes and furniture to charities.  The less fortunate people may receive your donated items.  Most of us know that we can donate clothes to Salvation Army (drop off stations), Goodwill (store locator) or other local charities.

What to do with used and good condition furniture?

Some choices are,

  1. Have a garage sale
  2. Post the item for sale with a picture in Craigslist
  3. Donate it, if the item is in good condition.
In my case, I had a set of dining table and chairs for sale.  If lucky, may be able to sell it for $400-500.  Worst, no one wants it. For the first two options, a disgruntled customer (a stranger) may come back to my home any time in future, make complaints about the product for any reasons, and demand cash back.  I would have to spend time to post the item, monitor communication, arrange appointments. 

I opted for fastest, safest and easiest way: donate it.

  1. Identify a local charity via (e.g Salvation Army)
  2. Submit appointment and request online that is convenient to my schedule; receive email confirmation about time-slot
  3. Wait at home during the time-slot. Salvation Army sent a truck with two helpers to move my used dining table set into the truck, and handed me a donation receipt to claim tax deduction

The thought of another family is able to use the dining table is more meaningful to me.  I will check with my tax consultant and maybe able to claim $50-$100 tax deduction.

Worry-free, trouble-free. 

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