CUT CLUTTER; CUT YOUR TAXES
By Barbara Ricketts, a.k.a. “The Mess Doctor”

If one of your New Year’s Resolutions was to “get organized”, here’s a great way to cut your clutter and cut your taxes for 2007 at the same time. According to the tax experts, the non-cash charitable donation is often overlooked.  If you donate the items you clean out of your over-stuffed closets and garage to a qualified charity, you can maximize the amount of this deduction. You can deduct the fair market value of the item at the time of the donation.

Now’s the time to start digging out all that old stuff (like that lava lamp, macramé plant hanger, flowered bell-bottom pants and old sports equipment from high school) that hasn’t seen the light of day for many years. Donate them to your favorite charity and get a tax deduction! Starting this project now, early in the year, gives you plenty of time to pace yourself through out the coming months so you can go through each drawer, closet and the garage and reap a nice BIG cut in your 2007 taxes. This is a great time to set up a schedule for yourself, maybe 1 closet per week, or 3 drawers a week, etc. This way, “organizing your whole house” becomes like eating an elephant, one small bite at a time! It’s more manageable, and you have a much better chance of being successful because you have plenty of time. Don’t wait till October to begin when you’d rather be thinking about the holidays!

Here are some hints on how you should document your donations: make a list of each item donated (be honest with yourself here and trash the trash!), its condition (new, good, fair, etc.), the date you bought it and how much it cost (if you can remember!) and the fair market value. There is a book called Its Deductible that is an excellent source of fair market values for frequently donated items.  You can find it at ItsDeductable.com.  You can also ask your tax preparer or use your local Thrift Shop to get values on your used items. You may also want to photograph your donations for your records.

Something to be aware of, if you donate items valued at $250.00 or more in one day to one charity, you are required to obtain a written receipt or letter from the charity documenting your donation. This receipt must be in your possession by the time your tax return is filed.

Now that you know how valuable your clutter is to the taxman, make a late New Year’s Resolution to “make money” while getting organized. You and your pocket book will be happy and you’ll be helping your favorite charity!

 If you have questions for “The Mess Doctor” or need professional assistance to start getting organized, contact Barbara Ricketts (LifeStyle Management Associates) at MessDoctor@Mac.com
or call 661-263-0124.