If
you
regularly
count
on
Goodwill,
the
Salvation
Army
and
others
to
find
homes
for
what
won't
fit
in
your
attic,
garage
or
spare
room
--
all
while
getting
a
charitable
tax
deduction
--
do
your
spring
purging
now.
That's
especially
true
if
you
commonly
fudge
the
value
of
donated
items.
In
2007,
the
Internal
Revenue
Service
will
hold
you
accountable
for
accurately
documenting
the
value
of
donated
goods
under
a
new
tax
edict
tucked
away
in
the
Pension
Protection
Act
of
2006,
signed
by
President
Bush
this
summer.
The
broader
act
is
aimed
at
curing
the
ailing
defined-benefit
pension
system
but
it
includes
a
host
of
unrelated
provisions,
including
one
that
governs
required,
accurate
documentation
when
you
claim
tax
breaks
for
gifts,
including
household
goods
trucked
off
to
charitable
organizations.
Under
the
current
law,
the
IRS
pretty
much
takes
you
at
your
word
when
you
claim
a
tax
break
for
donations
of
money
or
items
you've
valued
at
up
to
$250.
Documentation
is
required
for
larger
amounts
and,
of
course,
if
you
are
audited.
Next
year,
you
might
want
to
put
a
check
in
the
Salvation
Army's
Christmas
Kettle
and
make
sure
that
futon
is
really
worth
$50
--
if
you
take
the
deduction.
Under
the
new
provision,
you
won't
have
to
file
your
receipts,
canceled
checks
or
other
donation
documentation,
but
you'd
better
have
proof
on
hand.
IRS
will
keep
tabs
on
you
through
a
form
that's
already
necessary
when
you
give
goods,
IRS
Form
|
 |
|
|
8283,
"Noncash
Charitable
Contributions"
which
comes
with
instructions,
both
of
which
you
can
download
from
http://www.irs.gov/.
Along
with
newly
required
documentation,
the
IRS
will
be
beefing
up
enforcement
of
existing
penalties
that
rain
down
on
you
if
you
overstate
the
value
or
adjusted
basis
of
donated
goods.
The
penalty
is
20
percent
of
the
underpayment
of
tax
related
to
the
overstatement
if
the
value
or
adjusted
basis
claimed
on
the
return
is
200
percent
or
more
of
the
correct
amount,
and
you
underpaid
your
tax
by
more
than
$5,000
because
of
the
overstatement.
The
penalty
jumps
to
40
percent
if
the
value
or
adjusted
basis
claimed
on
the
return
is
400
percent
or
more
of
the
correct
amount
and
you
underpaid
your
tax
by
more
than
$5,000
because
of
the
overstatement.
And
of
course
you'll
have
to
pay
any
taxes
that
were
actually
due.
The
Salvation
Army
(http://www.satruck.com),
Goodwill
Industries
(http://www.goodwillpromo.org)
and
other
charities
offer
suggested
values
for
a
host
of
items,
but
it's
up
to
you
to
make
sure
you
get
it
right.
If
you
are
a
frequent
household
goods
donator
it
makes
sense
to
get
more
assistance
from
the
source
of
the
new
rules.
IRS
Publication
561
"Determining
The
Value
Of
Donated
Property"
or
theIRS
Web
page
(http://www.irs.gov/)
with
the
same
name,
both
teach
you
how
to
value
everything
from
aircraft
and
household
goods
and
to
real
estate
and
stocks. |
