Denver Moving Tip: Tracking Donations for Tax Purposes
There are many ways to save money during the moving process. It can be tough to spot these tips and tricks, let alone utilize them while you’re dealing with the stress and preparation for your move. As Denver movers, our goal is to help your Aurora, CO move to be as stress-free and affordable as possible, which is why we update our blog with great money-saving tips and tricks. Today, we’re going to look at a round-about way of saving money that doesn’t often occur to people. This is tracking your donations to non-profit organizations for tax purposes.
Benefits of Tracking Donations
There are multiple benefits to tracking donations. There is the obvious one (that you’ll save money come tax season), but there is an additional benefit that not many people consider: You’ll have less things to pack for your move. It’s very important to de-clutter before you move. Otherwise, you’ll waste a lot of time packing up items you don’t need, moving them, and unpacking them in your new home. Transferring clutter is a waste of resources. When you donate unneeded items, you save time and money, and you’ll help other people in need. It really is a win-win. Let’s look at how exactly you can track your donations for the best tax benefit:
How to Track Donations for Tax Benefits
1. Make Piles
As you go through your clothing, furniture, and home goods before your move, create a pile of items you no longer need, but are in good condition. Then, separate items into separate piles according to type. For example, pile together clothing items, electronics, furniture, etc. separately to make it easier to track.
2. Record Items
In order to get a tax deduction come tax season, you’ll need to itemize your deductions. There are many apps and lists you can use to make this easy. Our favorite is Turbo Tax’s app called Turbo Tax – It’s Deductible. If you use Turbo Tax, this is by far the easiest way to keep track of your donations. When you use Turbo Tax to complete your taxes, it will automatically sync with your donations, making it very simple. If you don’t use Turbo Tax, there are articles available online that provide a tax valuation guide for donated goods. Additionally, Goodwill has a Donation Receipt Builder that will make the process simple.
Next, you just need to donate your items. Make sure all the items you’re donating are in good condition before packing them up and driving them to the place you want to donate. There are many places around the Denver area, including Goodwill and Arc Thrift Stores.
4. Save Money on Taxes
Be sure to provide your list to your accountant before tax season. Or, if you’re doing your taxes yourself, be sure you know how to utilize your donations for the best tax benefit. It’s important to know that there are limits to how much you can donate. This article can shed light on this subject. Simply put, the deduction is limited to 50% of your income. Obviously, unless you’re donating some very valuable items, this won’t be relevant. But, it’s still important to know the rules and laws!
Call Our Expert Movers for an Affordable Move
If you are worried about the moving process – the stress, the worry, or the cost, don’t hesitate to call a representative at Affordable Moving and Storage. We are here to help make your move as stress-free as possible. And, we have years of experience doing so. Give us a call to learn about the many services we provide, including packing, moving, and storage. Check back on our blog often for updates on how to save money during your move!