Items you donate may not qualify for a deduction

It used to be that you could take all your unused clothing and household items to the local Goodwill, Salvation Army, or thrift store and reap a nice charitable contribution deduction.

All you needed was a receipt stating the fair market value and the deduction was allowed. The rules have changed for any donation of noncash items to charitable organizations after August 17, 2006.

A charitable contribution deduction of clothing or household items will only be allowed if the item is in good used condition, or better, and you have a receipt. The IRS can deny a deduction for any item that has little monetary value. There is an exception for single items that have a value of more than $5000 and for which you have a qualified appraisal.

Tax Tips Small Business

  • Employee Meals: When Does the 50-Percent Limit Apply?

    Don't reduce your deduction if you aren't required to

    In most cases, an employer is only allowed to deduct one-half of the expense that is paid to employees for meals. However, in some instances, the full amount is allowed.

    Read more ...

Small Business Quick Tip

  • Self Employed Health Insurance

    If you are a self-employed taxpayer, you may deduct 100 percent of your health insurance premiums from your income. The deduction for health insurance premiums does not reduce your self-employment tax, however.
Thursday, 17th January 2019
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Tax Tips Personal

  • Tax Break for Reservists Called to Active Duty

    Penalty-free withdrawals from retirement plans

    If you are a reservist or national guardsman who was ordered or called to active duty for a period in excess of 179 days, you may withdraw money from your qualified retirement plan or IRA without incurring the 10% premature distribution penalty.

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Personal Quick Tip

  • Making Gifts

    Are you planning on making any substantial gifts? Talk to your tax preparer first. Gifts with values exceeding $14,000 must be reported to the IRS.