January 23rd, 2016
TAX TIP OF THE DAY... IRS secret to clothing bin donations
The general rule is that you need a receipt in order to deduct clothing donations. But there is an EXCEPTION related to clothing bin donations. Requirements: 1) it has to be an un-manned drop off point where a receipt is not available 2) value must be less than $250 per drop off 3) you need to keep a log which details the time, date, location and listing of donated clothing.
This is an emergency procedure to salvage a deduction. Much better is to donate at a location where you can get a receipt. You would not be limited to the $250 per drop limit. Clothing is generally worth $100 per large Hefty bag.
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David S. Baboian, CPA