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New Tax Rules for Charitable Deductions

Interesting Associated Press story today:  New Tax Rules for Charitable Deductions:

Donating an old toaster or television to a local charity won’t count as a tax deduction if it’s not in good condition….Any household item with little value likely won’t qualify for a deduction under new tax rules for charitable giving and receiving.

Many charitable organizations support the changes. Dave Barringer, vice president of member relations at Goodwill Industries International, said they will reinforce a common message: ”This isn’t a place to dump trash.” ”Most people take that to heart,” Barringer said.

The IRS may deny deductions for donations of clothing or household items — furniture, appliances, linens, electronics and similar items — that aren’t in ”good” condition. What counts as ”good” isn’t clear under the new rules, which became law Thursday when President Bush signed a massive pension bill.


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