How to get money for your used clothing
Mar 18th, 2008 by Afiya
Article Launched: 03/17/2008 06:58:59 PM PDT
If you itemize your tax return, you are in a perfect position to pick up some extra dough.
You are allowed to deduct the fair market value of items you donate to qualified charitable organizations.
If you’re like most of us, you stuff a bunch of clothes into bags, drop them off at a collection center and claim a $100 deduction.
Guess what? Those clothes easily could have been worth $1,500 or more if you only knew how to value them.
The law does not allow the charity to set the value of an item. You - the donor and taxpayer - must do that. But how much should you claim?
If you overstate the value, you risk an audit, penalties and interest. If you underestimate, you will pay more taxes than you should. Here are some examples of what donated items are worth, assuming they’re in “good” condition:
Women’s dress: $13.
Men’s suit: $35.
Boy’s jeans: $8.
Girl’s sneakers: $12.
Luggage set: $10.
Stuffed animal: $3.
See what I mean? It really can add up quickly.
Certified public accountant William R. Lewis of Certified Used Clothing Values Inc. has written a booklet called “MONEY For Your Used Clothing - 2007 Tax Year.” The values are obtained from annual surveys of consignment and thrift shops, conforming to IRS requirements for donated items.
“MONEY For Your Used Clothing” is guaranteed in two ways: If you itemize your tax return, Lewis guarantees you will reduce the taxes you owe or increase your tax refund by at least $250 or your money back.If the IRS disallows the deduction, Certified Used Clothing Values Inc. will pay any interest or penalties.
Lewis estimates clients have saved more than $11 million in taxes.
“MONEY For Your Used Clothing” also addresses recent tax law changes and guidelines for the tax return you must file by April 15, 2008. The booklet retails for $25. However, I’ve negotiated a discount with Bill Lewis for my “Everyday Cheapskate” readers: $20 plus shipping and handling.
Go to www.DebtProofLiving.com and click on “Bookstore,” or call (800) 550-3502 Monday through Friday from 9 a.m. to 5 p.m. PDT.
I can tell you from my own personal experience that you are going to love this booklet.
You can e-mail Mary at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723.
