Can you claim a tax deduction for gifts to a friend?
August 15, 2011
Date: 26 Jan 2010
Can you claim a tax deduction for monetary donations to a family member or friend? How much can you claim for items donated to the Goodwill? How do you determine the values?
Date: 3 Feb 2010
Donations to a family member or friend are not tax deductible. Only donations to a qualified charity are deductible as charitable contributions.
Items donated to Goodwill and other charities are based on the fair market value of the items. There are no published guidelines that I'm aware of from the IRS. Here is one from Goodwill Industries of San Diego: http://www.sdgoodwill.org/donation_values.shtml.
If you give more than $500 of a given type of merchandise (used clothing), special disclosure is required on IRS Form 8283, which is required to be included with your income tax return.
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