Attic contents may be worth hundreds in tax deductions
The Associated Press
NEW YORK — Searching for yearend tax deductions? Look in your attic, basement or garage.
Old clothes, books and household goods can be worth hundreds of dollars on your next federal income tax return if they're donated to qualified charities by Dec. 31 and adequate records are maintained.
"If you haven't worn ... or used it ... in a year, then go ahead and donate it," said William R. Lewis, a Lincoln, Neb., accountant who has developed "Cash for Your Used Clothing," a booklet listing market values of nearly 600 items of used clothing and household goods.
The Internal Revenue Service lets taxpayers claim as an itemized deduction the "fair market value" of donated property, which means what comparable items would sell for in places like thrift or consignment shops.
The government puts the burden of determining that value on the donor, not the charity. Moreover, if the value of all the donated property exceeds $500, taxpayers must fill out extra paperwork — Form 8283. An outside appraisal is required if the total value reaches $5,000 or more.
Few people, however, take the time to accurately calculate the value of their property or check out a charity's background. The IRS says only about 10 percent of the 114 million returns this year included Form 8283.
"To avoid filling out forms, they'll guess at a number less than $500. Unfortunately, they're short-changing themselves," Lewis said.
He says most people would be surprised by how much their discarded items might be worth if resold over the course of a year.
Among the examples listed in his 44-page booklet, which sells for $25: A man's two-piece suit could fetch $15 in fair condition to $65 in good condition; boy's jeans, from $2 to $7; maternity slacks, $3 to $9; books, 50 cents to $2; or an electric typewriter, $15 to $40.
Estimates are based on audits of several consignment and thrift shops in the Midwest and South; prices may be higher in the Northeast and West coasts.
"You probably can do a lot better than a garage sale ... (and) it's less time-consuming," Lewis said.
In fact, Lewis said that he first got the idea for his booklet several years ago, when his wife Karen announced she was planning a garage sale to eliminate some old stuff around the house.
"I had no desire to have a bunch of strangers go into my garage ... just so we can sell a shirt for $1," he said. "I said to my wife, 'I'll take whatever you're going to sell to the Salvation Army and just write you a check for what they would be worth.' I gave her a check for $400. I saved her a lot of time."
annual incomes of between $36,900 and $89,150 can save 28 cents in taxes for every $1 in itemized deductions.
Lewis estimates households with
Non-cash donations totaling $1,500 for the year could add up to a tax savings of $420.
They also add up to millions of dollars in revenue for the charities.
Goodwill Industries of America, which collects everything from cars to comic books, had revenue totaling $425.3 million last year from donated items resold to the public in its thrift shops, said Jeanne Hamrick, a spokeswoman for the Bethesda, Mdbased organization. She said Goodwill received 646 million pounds of clothing and textiles in 1992, or about 45 pounds per individual donation.
Like many other charities, Hamrick said that Goodwill always had "a surge of donations" the final week of the year because that is the last chance to obtain tax deductions for the current calendar year.
The key to assuring the deductibility of a donation, though, lies in proper record-keeping. That means obtaining an authorized receipt from a charity and maintaining a list of the donated items, noting things like the original purchase price, current market value and condition of the property. Photographs or videos are also likely to stand up to IRS scrutiny.
While charities don't put a value on a particular donated item, they can say what comparable items have sold for.
Neighbors sue over holiday light display
By James Jefferson The Associated Press
LITTLE ROCK, Ark. — Jennings and Mitzi Osborne say they have a constitutional right to sprinkle more than a million points of light around their home every Christmas.
The two sides met last week in court.
Their neighbors say the dazzling electric display has gotten out of hand, drawing crowds that diminish property values as well as residents' enjoyment of their own property.
A lawyer for the neighbors who sued the Osbornes likened the display to a theme park.
"It involves the construction and operation of an enormous and spectacular Christmas light display of such size and extravagance that it has become a tourist attraction," lawyer Gary Corum said.
The neighbors sued after the Osbornes put up 1.6 million lights last year, then bought the houses on either side of them and promised to make this year's electrified holiday cheer even larger.
Osborne lawyer Sam Perroni said shutting down the display would violate his clients' First Amendment rights to freedom of speech and religion.
He said the neighbors only would be affected by heavier traffic, which happens at Christmas anyway.
Corum said neighbors sought to eliminate the crowds, not the light display. He cited a Louisiana case in which the courts ordered a private light display scaled back after neighbors sued.
The light show includes: miles of strands of red lights draped over the house, yard and brick wall; Christmas tree masts of lights at least 80 feet above the house; a rotating illuminated carousel; and Mickey Mouse driving a steam engine. Also lit up is the usual cast of Christmas characters: wise men, camels, Santa Claus and reindeer.
Left:
Maura Burgess-
Carland
Pinckney
6th grade
The best thing about the K-Youth program is:
"It lets kids like me to have fun in lots of different ways."
Right:
Sadie Caplan
Quail Run
5th grade
The best thing about the K-Youth program is:
"It involves kids!!"
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COMMUNITY • *K-you* • December 8, 1993