Linda Bejamin Pardee de-cluttered her space and ended up with a major tax write-off as a result.
“Charitable donations: It all started with the purse museum.
Okay, I admit it – I love purses. It’s my thing. They always fit even if I’ve eaten a few too many chocolate truffles. They come in all colors, shapes, and sizes and they’re so damn pretty!
So when I started the Spending Fast, my first commitment was: ‘No New Purses!’ I also realized I wasn’t using several of my bags and that selling them might help bring down my debt. I listed a few of them on eBay to see what would happen. Some sold, some didn’t. Since my PayPal account is tied to one of my major credit cards, the ones that did sell went immediately toward paying down the balance on that card.
I held onto the purses that didn’t sell for about a month, all the while thinking ‘now what’? Having just started the Spending Fast I was in a downsizing frame of mind and not just on handbags but on clothes and shoes as well.
I started researching charitable donation centers in my area (Los Angeles) and found that the National Council of Jewish Women, which has several ‘second hand’ stores, has a reputation for giving top dollar receipts on donations. I bagged up the unsold purses and some old clothes and made my way over there. A few weeks later I received a tax receipt in the mail. My donation brought in over $350 in tax deductions. I couldn’t help myself – I went back into my closet and started looking at the things I’d been on the fence over donating.
I got serious and honest with myself, and I decided that I only wanted to keep what I really used on an everyday basis. The frenzy had begun.
Once I was finished with my clothes closet I started looking at everything in my house differently. I started in the kitchen and got rid of all the items I had stuffed in the back of the cupboards. I had duplicates of everything from mixing bowls to flatware. These things were just taking up space. Then there were books. A goldmine of books I wasn’t going to read again! I boxed them up. Our old futon in the guestroom was a landing strip for luggage – it had to go. I donated lamps and old bath towels that I’d long ago stopped using and was holding onto in case my nieces finally moved out of my sister’s house and needed them. My husband thought I’d lost my mind but went along with it.
Last month I started organizing paperwork in preparation of having our taxes done. I totaled up my receipts from the charitable donations I’ve made over the last several months, and I have a write off of a little over $2,100! Needless to say, I’m thrilled (and I have really clean closets too.)
As for my love of purses, let’s just say I cover my eyes when I walk thru department stores . . . “
Thank you Linda!
Do you utilize charitable donation write-offs on your taxes? What’s the biggest charitable donation you’ve made in a year?
Would you like to be a contributor on a topic related to personal finance or frugal living? Send me an email at: firstname.lastname@example.org. (Please know that credit or lending companies will not be considered. Only real people with real stories and real experiences should email.)
P.S. Looking to declutter and minimize? CLICK HERE to learn about the Fearless Minimalist Guide
OH YEAH! I love to make quilt tops and had worked for credit at a local fabric store. She quilted 4 quilts for free for me(using that wonderful credit) and I donated them all, valued at $$200.00 each cause they were BRAND NEW QUILTS, to a local battered woman's shelter who had previously helped my elder sister years back. I also donated food items and old appliances that can be used by them to set up new households. It worked wonders for my tax return and my heart because by helping them I also helped myself. I am well underway to donate 4 more quilts this year cause wow it is a great feeling to help others by doing something I love to do anyway. I highly recommend it!
That's so awesome Shauna! What a cool way to help people!