20 Million Americans Overpay Taxes By Incorrectly Valuing Non-Cash Donations
Omaha, NE - According to IRS statistics, each year over 20 million people who itemize on their income taxes report giving donations of clothing, furniture, household goods and other non-cash items to charity. Unfortunately, many of these taxpayers underestimate the value of their contributions by $1,600-$1,700 per year or more because they do not know the correct fair market value of their donation. As a result, the average person pays $526 more in income taxes than required if they simply tracked and valued their donations properly.
Valuing donations is difficult because charities do not set values. Donors are supposed to do that, but most people have no idea what the fair market value of their gift is worth. Its Deductible (patent pending) is an easy to use software program that determines and tracks the proper fair market value of donations, while maximizing taxpayer savings.
Assuming "good" condition, following are some surprising valuations by Its Deductible of commonly donated items (2000 values):
These same items are often seen at garage sales for a fraction of their fair market value. Therefore, in most cases, selling items at a garage sale is a far worse financial decision than donating the item at the proper fair market value.
"Many people give to charities regularly but think that their donations are not of enough value to warrant keeping records for tax purposes," explains Carey Rademacher, co-creator of Its Deductible. "Even if they do know how to calculate an item's fair market value, no one has time to go from thrift store to thrift store comparing prices as recommended by the IRS. Its Deductible compiles annual surveys of consignment and thrift stores to help people continue to make needed donations to charity without overpaying taxes or wasting time. We even guarantee that our software will save you an additional $100 on your taxes."
It's Deductible (October, 2001)