Think your Goodwill donations are tax-deductible? Maybe not. One taxpayer lost a $ 25,000 deduction because of a single missing step. Learn how to protect your donations from IRS denial.
#TaxDeductions #CharitableGiving #IRSCompliance #NonCashDonations #TaxTips #Bookkeeping #SmallBusiness
Key Moments
- 00:00 – Intro to the Duncan Bass case
- 01:10 – How the audit started and expanded
- 02:35 – The $25K in clothing donations and 173 receipts
- 03:20 – IRS thresholds explained: $250, $500, $5,000
- 04:05 – The importance of aggregating similar items
- 05:10 – Why Duncan’s deduction was denied
- 06:30 – What deductions were allowed (non-clothing)
- 07:15 – Your checklist for compliant non-cash donations
- 08:25 – Dangers of donating to your own nonprofit
- 09:05 – Final takeaway and resources
Key Notes
- Donations over $5,000 of similar items (like clothing) must have a qualified appraisal.
- The IRS aggregates similar items even if donated in multiple trips.
- Form 8283 must be completed: Section A for over $500, Section B for over $5,000.
- 173 receipts do not replace proper documentation or valuation.
- Donations to your own nonprofit are extra risky without proper separation of personal and organizational finances.
- The IRS is generous—but only if you follow the rules.
Links
Website: www.abandp.com
Email: contact@abandp.com
Phone: 310-534-5577
