How much tax deduction will he receive for the clothes

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Question

Every year Tom donates his previous year's clothing to Goodwill to make room in his closet for this year's fashion. He estimates the value of his donation to be approximately $6,000. Tom recently learned that because his donation exceeds $5,000, he must support his donation with an appraisal and signed statement by the appraiser on Form 8283. Tom decides to claim a charitable deduction of $4,900 to avoid the appraisal requirement.

If Tom gets an appraisal that states the value of the clothes is $6,000, how much tax deduction will he receive for the clothes?

If Tom's clothes are worth $6,000, is he better off getting the appraisal or reporting a deduction of $4,900? What information would you need to answer this question?

Does Tom's reporting $4,900 violate tax law and/or ethical standards?

Do you think the IRS has reason to be suspicious of contributions that fall just below $5,000? Why?

Reference no: EM132406985

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