Garage Sales Can Help

with Tax Savings

The weather is supposed to be lovely this weekend. Bright, warm, and sunny. It is a great time for a garage sale. Most of us want to clear out the house, get rid of old items and make a little bit of money. There are old movies, record albums, headphones, cassette tapes, video games, books, some old furniture, etc. – All marked down to rock bottom prices.

After the garage sale has completed, there are usually lots of items remaining. Instead of throwing those items out or pulling those back into the house, consider donating them to a local library or other charitable organization and make sure you get a receipt. The items you are giving to the charity might be tax deductible, and we all like saving money on our taxes. (Always check with your tax advisor.)

Having had a garage sale in 2007, I soon realized just how much of a tax deduction there would be for the items I was basically trying to give away after the garage sale was completed. There were record albums, DVD/VHS movies, computer games, books, etc. Everything was boxed up and taken to the local library. They did an inventory of those items and sent a receipt for the donation. Then, while doing my taxes, the tax software helped assign a value to those items and before long, there was almost $500 worth of charitable deductions!

Next time you have a garage sale, consider donating the items that remain to a local charity. Most of the time you get a tax deduction and the charity gets needed items to help others in the local community. Make sure you get a receipt. Saving money on taxes and cleaning out the house is a great combination.