A very strange phenomenon exists in the average American household, wherein items that are no longer needed, such as clothes, shoes, toys, games, seasonal decor, sports equipment, electronics, appliances and kitchen utensils, seem to accumulate in the dark of night, filling cupboards, closets, attics and basements to the brim and beyond. I call it stuffitis, a condition for which there is an easy, albeit profitable, treatment.
Should your home have contracted a case of stuffitis, there are two effective methods to treat it: Sell the stuff, or donate the stuff.
SELL THE STUFF. There are several ways to sell your stuff, none of which guarantee success. I hosted my final garage sale several years ago, which brought great disappointment. I had carefully cleaned, priced and displayed every item. After being met with way too many offers of, "Would you take five bucks for everything?" most of it was still left at the end of a very long, hot, disappointing day. So we hauled it to a donation bin.
But don't let my experiences dissuade you. Depending on what your stuff is, you may find success with Craigslist, eBay or local buy-and-sell groups.
DONATE THE STUFF. I am a big fan of donating good-quality stuff to charities that are doing good in the world. I know that my stuff is going to get to where it is needed most. That's my first reward. The second reward is that the IRS compensates us for doing it. Seriously.
By donating used items (in good or better condition) to qualified charitable organizations, my husband and I easily claim thousands of dollars in valid tax deductions on our income tax return. And we do this confidently and legally. Every year, we follow the guidelines in a simple workbook called "Money for Your Used Clothing" that is produced by our friends, tax professionals William R. Lewis and Connie S. Edmond.
They know their stuff (no pun intended). Their work is impeccable, too. Each year, they send teams to audit thrift stores and secondhand stores throughout the country and certify market value for used items. This is important because the IRS allows us to deduct on the true market value of each item we donate, but we have no way of determining that value. And market value changes, so we won't dare use the numbers from, say, 2014 for our 2016 return.
"Money for Your Used Clothing" is more than a valuations guide. It serves as a record of details about the charities that receive our donations, a place to staple the receipts we collect throughout the year. We keep photo documentation of our donations in this workbook, as well. And now for the best part — a benefit that's offered by no other organization, tax preparer or market value lists I know of.
Once I register our "Money for Your Used Clothing Tax Year 2016" workbook (instructions on how to do this are clearly presented in the workbook, and it's easy), we have an Audit Protection Guarantee. That means, if the values we use from this workbook to claim a charitable donation on our 2016 tax return are called into question by the IRS via a tax audit, Lewis, Edmonds and their tax team will handle all communications with the IRS on our behalf. We don't even have to show up at the audit. And they will pay all interest and penalties if the IRS ever determines that the values we claimed were overstated by up to $5,000 in donated value.
Donating used clothing and household goods to qualified charities has never been easier, thanks to this handy workbook and valuations guide. The "Tax Year 2016" edition lists over 1,300 values of everything you can imagine — socks, backpacks, computers, cellphones, headboards, artificial flowers, lamps, pillows and even goalie pads!
While this valuable publication retails for $25, this year we are once again offering it to our Everyday Cheapskate readers and Debt-Proof Living members for just $20 plus shipping.
To get your copy of "Money for Your Used Clothing Tax Year 2016," call 800-550-3502 Monday through Friday between 8:30 a.m. and 5:00 p.m. MT. Or visit the bookstore on the Debt-Proof Living website.
Mary invites questions, comments and tips at [email protected], or c/o Everyday Cheapskate, 12340 Seal Beach Blvd., Suite B-416, Seal Beach, CA 90740. This column will answer questions of general interest, but letters cannot be answered individually. Mary Hunt is the founder of www.DebtProofLiving.com, a personal finance member website and the author of "Debt-Proof Living," released in 2014. To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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