Thank you Mary Hunt for this article and book review!
CLEAN OUT YOUR CLOSET AND MAKE CASH without holding a garage sale!
Ah, the glories of spring: twittering birds, blue skies, winter coats returning to storage and the start of spring cleaning. This year, before you simply throw away your unwanted stuff, why not pay yourself back, compliments of Uncle Sam?
Do you usually just give your things to the nearest Goodwill and politely refuse a receipt, thinking your donation isn't worth much? Well, think again. "Money For Your Used Clothing, 2009 Tax Year," part donations valuations, part workbook, lists IRS-accepted values for more than 850 household items that are most often donated to charities like Goodwill and Salvation Army for resale. This handy booklet offers eye-popping proof that your discarded items can be worth a lot at tax time.
Most of us, who itemize our federal and state income tax returns, low-ball the estimated value of our goods for fear of the IRS swooping down to clobber us: "You claimed $10 for this never-worn Christian Dior dress? Are you crazy? That will be a $10,000 fine and 10 years in Sing-Sing."
The author of this book, CPA William Lewis, gives this example: Let's say the total market value of your donated items is $1,500. Multiply that times your tax rate, say 28 percent, to determine your tax savings. Are you ready? $420!
"Money For Your Used Clothing" offers excellent advice on determining the certified market valuations accepted by the IRS on hundreds of items taking up space in your home. The author helps you determine the condition of your stuff. Then, a dollar amount is assigned that you can legally deduct from your total income.
Last year's leather pumps look great, but you don't wear them anymore. Donate them for a $16 tax deduction. How about those nice jeans you can't squeeze into anymore? $9 deduction. Not having any more babies? A maternity dress in good condition can be deducted for $18 and the IRS won't even blink. Check your closets. Computers, rainwear, toys, books, major appliances, linens, athletic equipment, furniture, magazines, even underwear (remember Hillary Clinton?) can all be deducted at prices you probably never dreamed of.
Once you've set aside your items to donate, simply record them in the handy ledger provided in this book. Add up the total, enter it in the appropriate space on your 1040 and then sleep with a smile on your face. The author includes practical advice on how to claim these deductions. He recommends you photograph your stuff before you box it up. Always get a receipt from the charity. The IRS doesn't like photocopied receipts, so stash those originals in a safe place.
"Money For Your Used Clothing" is available now in the Debt-Proof Living Bookstore for the special price of only $20 (plus s/h). Or, call 800 550-3502, M-F, 8:30 to 5:00, PST to order. This 2009 Edition is for your 2009 federal tax return, which you must file on or before April 15, 2010.
"Money For Your Used Clothing" comes with a $200 savings guarantee. If, after completing this booklet's workbook, you don't save an additional $200 on your itemized tax return, then return it for a full refund.
©Copyright 2010 Mary HuntEveryday Cheapskate is a Registered Trademark |
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