Renovating, remodeling, redecorating? Do you have a home full of furnishings and art your children and grandchildren do not want to inherit? Consider donating to charity for a valuable tax deduction. Charities and governmental organizations accept a wide range of property for donation.

Now, for the tax savings—an individual can deduct the IRS defined Fair Market Value for donated property as a Non-Cash Charitable Contribution. This property may include:

• 1.
  Furnishings
• 2.
  Appliances
• 3.
  Fixtures like sinks and vanities
• 4.
  Building materials
• 5.
  Cabinetry
• 6.
  Fine or decorative art
• 7.
  Collectibles
• 8.
  Other household content

Click the links below for all the tax deduction details

Fair Market Value

The Fair Market Value, or amount of the tax deduction, is based upon comparable sales of similar property researched on the open market. Clients enjoy donating and being done rather than waiting for pieces to sell on consignment, in an estate sale or at auction. Selling takes time and often the pieces may not sell, or the sales price could be disappointing. Donating to charity is simple and guarantees the donor the tax deduction at the appraised value. When donating property or groups of similar property exceeding $5,000 in value, the IRS requires an IRS Qualified Appraisal by a Qualified Appraiser.

After-tax Benefits

If a client has an effective or average tax rate of 25% federal and 5% for state, every dollar’s worth of donation would result in $.35 in after-tax benefits.

The tax deduction is taken as an Itemized Deduction on the Individual Income Tax 1040 return. The deduction is limited to 50% Adjusted Gross Income with a five-year carry-forward.

Not only are the financial benefits substantial, donating to charities or governmental institutions gives property a second life and helps further the missions of these organizations.

The Green Mission Inc. and Probity Appraisal Group produce thoroughly researched IRS compliant appraisals efficiently, working closely with our clients to ensure utmost attention to detail. The Green Mission focuses on appraisals for building materials, appliances and fixtures while Probity concentrates on appraisals for fine or decorative art, collectibles and fine furnishings.

Reach out to our team to receive a no-obligation quoted value range on your project.

Click here for additional articles on donating property and the related tax benefits: