Claiming large charitable write-offs for clothing donations, without following proper procedures can be costly, relative to tax filings. A recent tax court decision defines the landscape. As shown in a new case, Bass, TC Memo 2023-41, 3/27/23, you must obtain an independent appraisal if the total value of your gifts exceeds an annual threshold.

A man donated clothes in good condition to Goodwill and the Salvation Army over 170 times and got a receipt for each trip. He claimed the gifts totaled over $25,000. He attached two Forms 8283 to his return, but he failed to get a written appraisal, claiming he didn’t need it because he didn’t donate any item worth over $5,000. But that’s not how the rules work.

All similar donated property is aggregated. Since he donated over $5,000 of clothes to the two charitable organizations, he needed a qualified appraisal signed by an appraiser. Because he didn’t get one, the Tax Court disallowed his charitable deduction.