The Tax Benefits of Donating to The Furniture Project
Because our organization is a registered 501(c)(3) nonprofit, your furniture donation may be tax-deductible which could lower the amount of taxes you owe.
Donating your gently-used furniture is one of the easiest ways to help individuals and families in Omaha who are starting over. When a person or family moves into a new place with no furnishings, a bed, table or dresser can make a huge difference. Your donation helps turn an empty space into a home for our neighbors. But there’s another benefit many people don’t realize: donating to The Furniture Project can also help you at tax time.
Because our organization is a registered 501(c)(3) nonprofit, your furniture donation may be tax-deductible. That means you may be able to subtract the value of your donated items from your taxable income, which could lower the amount of taxes you owe.
What You Can Deduct
You can usually deduct the fair market value of the furniture you donate. This is simply the amount your item might sell for today in a thrift store or online marketplace, not the price you originally paid. Most household furniture in good condition qualifies for deduction.
How to Claim Your Deduction
Ask for a receipt.
After you donate, make sure you get an itemized receipt that lists each of the items you gave. Our team is happy to provide a receipt when donating furniture.Figure out the value.
Look at thrift store prices or online resale listings to estimate what each item is worth now. NOTE: If an item is worth more than $5,000 individually, the IRS may require a professional appraisal.Itemize on your taxes.
Claim your donation on Schedule A when you file your tax return. It is also recommended that you ask your preferred tax professional for any additional guidance based on your financial circumstances.
Why It Matters
Donating to The Furniture Project benefits our community, our environment and YOU. You receive a tax benefit for choosing to give instead of throwing things away, and our neighbors throughout Omaha receive the furniture they need to live safely and comfortably.
If you have furniture in good condition that you no longer need, consider donating it. You’ll clear space in your home, support families in your community, and possibly save a little when filing your tax return — a win for everyone.
This post is intended to be informative. Please contact a tax professional for any questions regarding tax deductions.
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