Monday, September 28, 2009
Tax data for fiscal year 2006, shows that individuals who itemized deductions on their tax forms (24.7 million) deducted a total of $52.6 billion for noncash charitable contributions. 6.2 million of these individuals filed Form 8283 which is used when the noncash donation exceeds $500. Of the total noncash donations, 49% of it was donated stock which totaled $23 billion. This was an increase of 40% from the prior year (2005). The amount ($6.3 billion) deducted for clothing fell 10.8% from the prior year, the first time that figure declined in the past few years. The drop could be a result of a tax law change in 2006 that stated these items had to be in "good condition or better" in order to allow for a deduction. If you are interesting in making a noncash donation to a charity, please be sure to read our tips on the subject here.