Turn holiday donations into tax deductions
Tax deductions for donating items to charity can spark the spirit of giving during the holiday season.
The New Year holiday has come and gone, now it's time to figure out how to cash in. Here's some tips for turning your donation into a deduction. Goodwill representatives say last minute donations rocked the location in Helena. Manager Brenda Mauk says they ended the holiday season by receiving nearly double the average amount of donations.
Mauk says, "The last day of the year we had like 110 donations. Normally we have between 60 and 70."
She says there's a reason for the surge in donations.
Mauk says, "Taxes they get a tax break for the donations which is really big here."
Mauk says they ensure donors have the necessary paperwork to get the write off.
Mauk says, "We just give them the receipts saying that they have the donation and then we have a piece of paper that breaks down the prices.”
Krystal Stewart, CPA for Anderson Zurmuehlen, says, "From there we work with the client to help them determine what the fair market value with all those items are. And that determining what the fair market value of what those items are, then that determines the deduction you get on your tax return.”
CPA, Krystal Stewart, says donating used items is a great way to get a tax break.
Stewart says, "Get rid of some of that old stuff that's laying around the house that they don’t necessarily use that is still in good condition that somebody else can reuse."
Mauk says the reason for donating isn't important, it's the impact it has on others.
Mauk says, "Just donate. Bring it. We need it. We want it. We need it."
In the end, when it comes to tax season, helping out in the community can also help your wallet.
Story by Kelley Smith, Beartooth NBC.
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