How much can I deduct for donations of clothes and furniture?February 1, 2011: 5:05 AM ET
We have been closing a house and donating clothing and furniture. What are the limits on in-kind gifts? — T.W., Pittsburgh
When you donate stuff as opposed to cash, the paperwork gets onerous once the total write-off hits $500. You'll need to file Form 8283, which asks for details like when you acquired the property and how you determined its value; for goods worth more than $5,000, you'll need an appraisal. But big givers like you have one reason to cheer: The rule that capped the deduction for charitable gifts for high-income taxpayers was repealed for 2010, and that repeal was extended through 2012. "That breather is terrific," says Bill Smith, a managing director in the national tax office of CBIZ MHM.