Donations to a charity can be non-cash items such cars, clothing and household goods and must be in good usable condition. Such donations can be tax deductible as long as all tax deductions are itemized on Schedule A of the 1040 form from the IRS.
Strict record keeping and substantiation rules apply to contributions of property. For non-cash contributions, the records must include the name and address of the charity to which the item was donated, the date and location of the contribution, a description of the item that was donated, a reasonable market value of the item and how that assessment was made and the final amount claimed as a tax deduction. If the contribution of property was worth between $250 and $500, then a written acknowledgement from the charity of the donated item must be included in the records.
If the contribution was worth more than $500, there are additional rules that apply. The IRS form 8283 must be filled out and there are more records that need to be included in documenting the deduction. How the property was acquired, such as by purchase or inheritance, needs to be included as well as the date the property was acquired and the cost or adjusted basis in the property.
If a non-cash contribution is made that is more than $5,000, then a qualified appraiser needs to assess the item or property and provide a written document to corroborate the value that is being claimed as a deduction.