Dr. Friday explains documentation thresholds for charitable gifts of cash and property. She warns that larger non-cash donations can be disallowed without proper appraisal support.
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.
Let’s talk about charitable contributions for a minute. Remember, if you give cash or you give away clothes for $250 or less, really all you need is a basic receipt.
If it goes over that, and this would be a combination thereof, I had a gentleman that gave $40,000 worth of clothing. His father had passed away, they cleaned out the house, they gave it all to Goodwill.
Without an appraisal, he was not allowed to do that. It’s that simple.
So if you’re giving big chunks of things away thinking you’re gonna help them and put some money in your pocket, you need an appraisal done on anything over $500. And that’s if it’s a lump together or not.
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.