Donations of furniture are considered charitable donations by the IRS. Some organizations that accept furniture donations include the Salvation Army, Goodwill, and Big Brothers Big Sisters. Most will even pick up the furniture from your house. Organizations that you can donate to for a tax deduction must be non-profit organizations, including religious groups, hospitals and schools.
How Much to Deduct
The amount of your deduction is equal to the value of the furniture minus the value of anything you received in return. For example, if you donated a couch worth $2,200 and received an "I Donated" tee-shirt valued at $10, you would deduct $2,190 from your taxes.
Records
Whenever you make a donation of furniture, it is best to get a receipt from the organization that accepted the donation. When the value of the furniture is greater than $250, you must have a receipt that shows the date of the donation, what was donated, its value, and anything you received in return. If you claim your furniture to be worth $5,000 or more, you must have the items appraised before you donate them. You cannot add the cost of having the furniture appraised to your deduction.
Taking the Donation
You must take the deduction in the year that the donations were made. In order to claim a donation for charitable donations, you must itemize your deductions. This means you cannot take the standard deduction. To itemize your deductions, fill out a schedule A. Add all of your itemized deductions and transfer the value to line 40 of your Form 1040 tax return.
Deduction Limits
Your deduction is limited to 30 percent of your adjusted gross income. For example, if your adjusted gross income is $60,000, you cannot deduct more than $18,000 worth of property including furniture. If the value of your donations exceeds this limits, you are allowed to carry over an excess for up to five years. If you donated $25,000, you would be able to deduct the first $18,000 in the year the donation was made and the remaining $7,000 the following year.
Condition of the Furniture
In order to be deducted, the furniture must either be in at least good condition or must be worth at least $500. If it is not in good condition, you must have it appraised.
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