Hey hey, Thrifters!
Tax season is here. I know some of you all fill your taxes right when you get your W2s in the mail. If you're like me you wait until a few days before April 18th to get it done. Taxes are a way of life. You may be wondering"What does taxes have to do with thrifting? Well, I'm glad you asked :)
If you donated to a charitable institution like Goodwill, Salvation Army, Dress For Success, etc, you can minimize your tax liability meaning there will be less money you have to pay in taxes.
I'm honored to interview my friend Simone Quinerly, CEO of Quinerly Financial. Quinerly Financial "specializes in building the financial structure for small businesses, non-profits, and individuals." One of her financial services included assisting individuals with taxes. I was able to talk to her about the benefits of giving back from a philanthropy standpoint and finically. Check out my interview with my interview with Simone below.
My interview with Simone Quinerly-
Thrift Out Loud: How does donating items to Goodwill or Salvation Army play a role in our taxes?
Simone Quinerly: Donating items to a Charitable institution helps minimize your tax liability. It also makes you feel good to know that you are giving back and doing your part in the economy!
Thrift Out Loud: What kinds of items can be donated?
Simone Quinerly: If you donate property other than cash to a qualified organization, you may generally deduct the fair market value of the property. If the property has appreciated in value, however, some adjustments may have to be made. Fair market value is the amount of an asset or donation with depreciation or appreciation factored into the price. You can donate electronics, clothing, jewelry, furniture, books, shoes, and household or office items.
Thrift Out Loud: Is there a limit to a number of charitable donations one can include in their taxes per year?
Simone Quinerly: Yes, In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carry backs. Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income. Adjusted gross income is gross income minus deductions such as alimony, medical expense, unreimbursed business expenses, retirement plan contributions, and loss of a sale of an item.
Thrift Out Loud: Can online companies that let merchants sell items, like Poshmark and Etsy, be tax write offs?
Simone Quinerly: Taxpayers actually will have to pay tax on any items sold. Taxpayers will receive Form 1099-K which could potentially generate paying self-employment tax on any items that are sold. But don't worry, you will also be able to deduct certain expenses such as cost of materials, shipping, and advertising. So selling items on that site could be a good form of income.
Overall, giving to charitable organizations is noble and can benefit you finically. So make sure you keep track of your donations so you can apply them during tax time.
If you need help with you taxes Simone can help you! Visit her website- www.quinerlyfinancialgroup.com and be sure to follow her on Facebook to learn more about her services.