Sinful income tax deduction?

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billpenn

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Hello all…looking for some opinions on this one.

This is the first year that I will be itemizing my deductions on my tax return (for tax year 2008). Accordingly, I am interested in obtaining receipts for all that I donate this year (including used clothing).

My sister “go through” a lot of clothing…since she takes the standard deduction each year, her used clothing donations make no impact on her tax situation.

My thought was to have her give me her used clothing and I would donate the clothing and thereby obtain the tax benefit.

Is that sinful? My issue is that I did not purchase the clothing myself - so I never incurred any expense for it. However, she could give me the clothing as a gift - at which point I can do whatever I like with it…such as donate it.

I’m on the fence…opinions please?
 
you do realize you can only deduct the fair market value of used clothing which is generally thrift store value, unless they are sold on consignment for more money, so if you have a $50 deduction that would be a lot. you might want to give general consideration at this time of the year when tax prep brings it to mind, on sacrificial giving and stewardship in general, because prayer and reflection on that matter will probably supply the answers you need.
 
I found info about valuation on bankrate.com - the info comes from Salvation Army website, and I would go with the lowest values in the range, e.g., a shirt valued at $2.50 - 25 shirts (easily done with my sister, LOL!) will get you $50, for example.

I’ve not changed my donating habits or the place to which I donate in the interest of increased tax benefit…this is the first year that I am seeking to document my activities because it is the first that I am itemizing.
puzzleannie said:
you do realize you can only deduct the fair market value of used clothing which is generally thrift store value, unless they are sold on consignment for more money, so if you have a $50 deduction that would be a lot. you might want to give general consideration at this time of the year when tax prep brings it to mind, on sacrificial giving and stewardship in general, because prayer and reflection on that matter will probably supply the answers you need.
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I would say don’t do it, as well…it’s best to go with your conscience’s first instinct. (which if you asked, then you probably have a feeling it’s not right) 🙂
 
I don’t think I would feel guilty about taking the tax deduction. If your sister gave you cash and you gave it away to charity, it would generate a legitamite tax deduction. So why should a gift in kind be any different?
 
The reason to donate isn’t to get a tax break–that shouldn’t be the dominant motivation behind charity giving–it is merely a bonus for doing so. So, perhaps, the OP is looking at this like the motivation is based on getting a tax break–and not on giving to charity–first. That could be why the question was asked–just my guess.:o
 
I will add that I don’t find it ‘sinful,’ per se–Just think the question came up due to the motivation behind donating. Although–your sister, OP, wanted to donate the clothing–so really, you are merely the middle person.lol 🙂 I think there are a few ways to look at this–better to give the clothes away to people who need them, than not.🙂
 
What you’re talking about is awfully close to fraud, and it certainly is deceitful. If you ever got audited, you would lose. Don’t do it-its not worth the loss of peace of mind. Let your sister donate the clothes out of love and compassion for the poor… Roanoker
 
This deduction would be perfectly legal under the federal income tax code. Doesn’t matter how you came by the donated items. No problem.
 
rwoehmke said:
This deduction would be perfectly legal under the federal income tax code. Doesn’t matter how you came by the donated items. No problem.
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Although the OP asked about sin rather than legality, your response is most interesting. Could you elaborate on this?

Peace
James
 
rwoehmke said:
This deduction would be perfectly legal under the federal income tax code. Doesn’t matter how you came by the donated items. No problem.
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I agree. Your donation is ethical and moral and you get the deduction.

If I give you several hundred dollars of cash as a gift, do you have to declare it as income? No.

If I give you several hundred dollars worth of clothes, do you have to declare that as income? No.

If you take the clothing or money I give you and donate it to charity, do you get the deduction? Of course. It is now yours to give.

How could this be unethical?
 
Paulin, a gift of money has to be declared on you income tax return, I’m pretty sure. Roanoker
 
It’s not a problem as long as the clothes get donated. We donate a lot of clothes each year to the St. Vincent DePaul box. In the past years we printed off the Salvation Army list. This year Turbo Tax included a list as part of the program.

Legally the clothes could be a gift from your sister.
 
Yeah, Paulin, you’re right. I forgot about the monetary limit. I believe it is $11,000 though. Roanoker
 
“My thought was to have her give me her used clothing and I would donate the clothing and thereby obtain the tax benefit.”

If your sister gave you title to her car, and you gave it to charity, you would get the deduction. If your sister gave you $500, and you gave it to charity, you’d get the deduction.

As long as your sister gives you the CLOTHES (not the receipt from the charity), you own them. You can do what you want w/them. You can donate the clothes (YOUR clothes, after she gives them to you) to charity and get the deduction. It’s perfectly legal AND sensible.
 
I asked the question because my sister’s old clothes are being donated one way or another…either she will donate them, or she could give them to me and I would donate them. If donates them, she had no tax advantage from that. If I donate them, I do.

So, two different avenues to the same outcome - the clothes get donated.
whatevergirl said:
The reason to donate isn’t to get a tax break–that shouldn’t be the dominant motivation behind charity giving–it is merely a bonus for doing so. So, perhaps, the OP is looking at this like the motivation is based on getting a tax break–and not on giving to charity–first. That could be why the question was asked–just my guess.:o
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