🧥💸 Donating Stuff to Charity? The IRS Wants Receipts – Just Ask the Bass Family

If you’ve ever dropped off bags of clothes at Goodwill and thought, “Sweet, tax deduction!” — you’re not wrong. But hold up — the IRS isn’t just taking your word for it. You need proof. Otherwise, your generosity may not help your tax bill one bit.

Let’s talk about a real case: Bass v. Commissioner, T.C. Memo 2023-41 — a Third Tax Court decision that’s basically a giant neon sign blinking, “DOCUMENT YOUR DONATIONS!”

🎣 Who Were the Basses?

No, not a fishing family. The Bass family claimed they made over $100,000 in non-cash charitable donations. That’s right — not money, but stuff. Clothes, furniture, electronics, you name it. They donated to multiple charities and wrote off big deductions on their tax return.

There was just one problem: they didn’t follow the IRS rules for documenting those donations.

The IRS said, “Nope,” and the Tax Court agreed.

📝 So, What Did They Do Wrong?

They didn’t provide proper receipts, detailed lists, or appraisals — things the IRS actually requires, especially for large donations.

Here’s what the court said, more or less:
“Just because you gave it away doesn’t mean you can write it off. Show us the paperwork.”

The Bass family lost the deduction. Ouch.

👕 What Counts as a Non-Cash Donation?

Non-cash donations are anything that isn’t money. Think:

• Used clothing

• Furniture

• Electronics

• Toys

• Vehicles

• Even artwork or collectibles

If you donate it, and it has value, it can be deductible — but only if you do it right.

✅ The Right Way to Document Your Stuff

Here’s a super-simple breakdown of what the IRS wants — depending on how much your donated stuff is worth.

🧾 Under $250 per donation type per year.

• Get a receipt from the charity.

• The receipt should include:

  • Name of the charity

  • Date of the donation

  • Description of the items (e.g., 5 tee shirts, 2 jeans, 1 hat, NOT 3 bags of clothes)

Example:
You donate a used toaster and a sweater. The total value is $40.
✅ Ask for a receipt from the charity that says:
"Received 1 toaster and 1 sweater on March 3, 2025."

🧾📝 $250 to $500 per donation type

• Same as above, but now the receipt must ALSO state whether you received anything in return (like a dinner ticket or raffle prize).

Example:
You donate a couch valued at $400.
✅ You must have a receipt and a note from the charity that says:
"No goods or services were provided in exchange for this donation."

📋 $500 to $5,000

• You need a detailed written record:

  • How you got the items (bought, inherited, etc.)

  • Approximate date of acquisition

  • How you figured out the value (e.g. ItsDeductible listing, Thrift Store, etc.)

Pro tip: Use Goodwill or Salvation Army value guides to price items reasonably.

Example:
You donate a TV, dining table, and five chairs. Value = $1,200.
✅ Create a written log that says:
"Donated used Sony TV, purchased in 2018, estimated value $300. Dining set bought in 2015, valued at $900."
Attach the charity’s receipt.

🖼️ Over $5,000? Time for an Appraisal

If your stuff is fancy — artwork, antiques, designer clothes — and worth over $5,000, you’ll need a qualified appraisal from a professional.

Example:
You donate a signed painting worth $6,000.
✅ You need:

• A signed appraisal

• Form 8283, filled out

• Receipt from the charity listing same as above.

🚫 What You Can’t Do

• Don’t make up values (“This t-shirt is vintage! Must be worth $200!” 🙄)

• Don’t guess what year you bought the item

• Don’t “bundle” your donations into one lump sum without a breakdown

• Don’t skip the receipt, even if it’s a small donation

🎯 The Big Takeaway from Bass v. Commissioner

The Bass family made real donations — no one doubted that. But because they didn’t follow the rules, they couldn’t claim a single penny in deductions.

Moral of the story: If you’re going to be generous, be organized about it.

💡 Quick Tips to Keep It IRS-Approved

• Snap photos of donated items before drop-off (not just the bags)

• Ask for receipts every single time

• Keep a donation log in a notebook or spreadsheet

• Use online tools like ItsDeductible to track values

• Get an appraisal when needed

🧺 Final Thought: Don’t Let Your Good Deed Go to Waste

It feels great to donate. But if you’re planning to deduct your generosity, do it by the book. Otherwise, your tax savings might end up in the same pile as that old couch — gone, forgotten, and not coming back.

Book a call with Lisa Brugman EA and Associates.