In a recent court case (Bass v. Commissioner), the IRS upheld its requirement for an independent appraisal if the non-cash donation exceeds $5,000. It means that if you plan to donate clothing to charity and the value of the donation is over $5,000, you will need to obtain an appraisal from a qualified appraiser to claim a charitable deduction on your tax return.
This new ruling is a reminder that it is important to be aware of the IRS’s rules for charitable deductions, especially when donating non-cash items. If you are unsure whether or not your donation is eligible for a deduction, or if you have any questions about obtaining an appraisal, consult with us.
How Our Tax Advisory Services Can Help
We understand the complexities of tax law. We can help you to ensure that you are taking advantage of all of the available deductions, including charitable deductions for clothing donations. Our team of experienced tax advisors can help you determine if your donation is eligible for a deduction and can assist you with obtaining an appraisal if necessary.
We also offer a variety of other tax advisory services, including:
- Tax planning and Tax Preparation
- Audit Representation
- Business Tax Planning
- Estate Planning
- IRS Problem Resolution and more…
Get in touch with us today and schedule your tax assessment. We look forward to speaking with you soon!