How much well I get to write off for tax deductions if I donate books?
I have quite a lot of old books I need to get rid of and am considering donating them if the tax deductions are significant. Does anybody have experi...
I have quite a lot of old books I need to get rid of and am considering donating them if the tax deductions are significant. Does anybody have experience with donating books? How would the books get valued?
The safest way to value them is fair market value. If you go to a site like bookfinder.com (I have no financial interest in them, but I’ve used them for years), you can see what a book will fetch. Use the lowest price for a book in similar condition.
You can go to an appraiser, but the appraisal will cost money. They may well give you a buy bid of 1/4 list for common books, and they’ll try to sell it at 55% of list, if they even want it. Watch for low-ball bids.
Tax documentation: Itemize your list, and get someone at the donee’s firm to sign off on it in writing, notarized if the donation is big enough. Take pictures or videos at the donee’s site of you, them and your books. Talking into the mike, one book at a time, is overkill, but it works (It’s the best way to defend an insurance claim, or in your case, a tax audit). Save any sales slips on those books as proof of purchase: save the credit card bill if it documents your original purchase. If you’re making a donation that’s even a few percent of your income, consider using a tax preparer who’s familiar with audit risk for such a large donation. Even if it’s a small donation, get a receipt.
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