Examples of Improper Valuing

1. You donate a woman's coat of high value that you originally bought for $55. In ItsDeductible, you describe it as a women's designer coat, which has a value of $165. If this coat is not a designer coat and you only paid $55 for it to begin with, it is your responsibility to assign the proper description and value.
   
   
2. You donate a belt sander that you've only had a few months, but it is broken. Since the sander is broken, you must describe it as "poor" quality even though it is practically new. Broken items that cannot easily be fixed will usually have little or no value. Because of recent tax law changes, items in this category are not deductible. Learn more .
   
   
3. You buy a man's suit at a garage sale for $5. One month later, you donate that suit to your local Salvation Army. The suit is in style and made of high quality material, so you select the "high" value in ItsDeductible. Since you have owned this property for less than one year, you are responsible to make sure you deduct only what you paid for it, instead of using the fair market value listed in ItsDeductible which may be higher.