You know you want to get rid of the old clothes, old toys, and other dust magnets in your attic, but what will get you the biggest bang for your stuff? You could plant a garage sale sign in your yard and try to make some quick cash. Or you can simply donate the goods to your local charity—which could lead to a 澳洲幸运5官方开奖结果体彩网:tax deduction next April, if you itemize deductions. Whi🦄ch is 🦄right for you depends on the value of your time and the dollar value of the goods themselves.

One’s Man Trash = A Wad of Cash?

There’s no question that 澳洲幸运5官方开奖结果体彩网:garage sales require a ton of work. You have to sort through your unwanted stuff, place price tags on each item and then haul everything onto the driveway and neatly display the goods. If you want folks to show up, you’ll also need to promote your sale by planting signs around the neighborhood and maybe also advertising through the local penny-saver or communiౠty website. Yet despite all the time and effort they require, some folks actually enjoy holding garage sales—and the lucky ones end up making a decent chunk of change.

Although the average yard-sale item is priced at a meager 85 cents, these sales rake in more than $4 million each week across the U.S., according to a Signs.com study. While that may seem like serious dough, the profits are far less impressive when you break down the numbers by individual garage sales. The vast majority of sellers make less than $300, based on a poll by YardSaleSearch.com.

On the plus side, the proceeds from a garage sale are not taxable. “Garage sales are considered the sale of 澳洲幸运5官方开奖结果体彩网:personal property, and you do not have to claim the money you received from the sale,” explains P. David Alessandri, a 澳洲幸运5官方开奖结果体彩网:Certified Public Accountant in Tampa, Florida.

Donate for Good Karma – and a Nice Tax🌼 Deduction

If the thought of organizing a garage sale makes doing your 澳洲幸运5官方开奖结果体彩网:income taxes sound like fun, you can always box up your unwanted items and drop them off at the local Goodwill, Salvation Army or another charitable organization's shop. You'll avoid a the headache of a sale and have the satisfaction of helping families in need. As an added bonus, you may be eligible for a tax 澳洲幸运5官方开奖结果体彩网:deduction.

To be sure that donation is truly 澳洲幸运5官方开奖结果体彩网:tax deductible, keep these three things in mind:

• Be sure to donate the items to a 澳洲幸运5官方开奖结果体彩网:qualified charitable organization.
• Always obtain a proof of donation for your contributions.
• Itemize your deductions on your 澳洲幸运5官方开奖结果体彩网:tax return, rather than using the 澳洲幸运5官方开奖结果体彩网:standard deduction.

“As long as you itemize your deductions, you can list your ‘non-cash’ donations on 澳洲幸运5官方开奖结果体彩网:Schedule A,” Alessandri explains.

Your donated items are assessed at “fair-market value,” which you can determine by comparable sales on eBay, Craigslist or at local thrift stores. You can also find donation-value guides on many charitable organization websites. If your donations for the year add up to more than $500, you must complete 澳洲幸运5官方开奖结果体彩网:Form 8283 and attach it to your return. On this more complex form, you have to describe each item over the $500 that you donated, identify the recipient and provide information about the value of the item, including your cost or 澳洲幸运5官方开奖结果体彩网:adjusted basis.

How big a deduction will you receive? That depends on your 澳洲幸运5官方开奖结果体彩网:tax bracket and rate. For example, if you donate goods with a 澳洲幸运5官方开奖结果体彩网:fair market value of $1,000 and your 澳洲幸运5官方开奖结果体彩网:effective tax rate is 15%, you will reduce your tax bill by $150.

The Bottom Line

So, which has the higher payoff: garage sale or donation? If you file a tax return with 澳洲幸运5官方开奖结果体彩网:itemized deductions, consider doing both. Hold a garage sale for some quick cash. Donate the items you don’t sell to a charity for the tax deduction. “That way, you’ll end up with some cash and maybe a🔴 little e💫xtra tax savings on your tax return,” Alessandri adds. If you take the standard deduction, though, bite the bullet and have a garage sale.