Dr. Friday recounts a case involving a charitable deduction disallowed by the IRS due to improper valuation. She stresses the importance of appraisals for non-cash donations over $250 and explains how to document contributions effectively to ensure compliance. Stay informed to maximize your deductions without running afoul of tax laws.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
I had an interesting case come in my office about contributions. More like a gentleman lost his father, his house was full of a lot of furniture and different things, so he took and took pictures, he went on to the Goodwill site, he made a list, and he put it all together and then deducted it. It came out to more than $40,000 worth of charitable deduction. The IRS disallowed it, and if you’re asking why, it’s because anything over $250,000 individually has to be actually appraised. And if you have a lump sum like that, they want an outside appraiser to give those numbers, not just yours. So there are ways of deducting, but make sure you understand how the tax law works.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.