Bill Clinton's Underwear and Donating Oriental Rugs

Bill Clinton's Underwear and Donating Oriental Rugs

Bill Clinton's Underwear

In 2006 the IRS tightened up the guidelines on the donation of household and personal property over the so-called Bill Clinton Underwear Incident:

On his 1986 return, Bill Clinton deducted $6 for three pairs ofunderwear and $75 for a suit with ripped pants given to the Salvation Army.  From Forbes.

The new guidelines are tighter but not terrible:

You can take a deduction for a contribution of an item of clothing or a household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return.  http://www.irs.gov/publications/p526/ar02.html#en_US_2014_publink1000229641

What this means is that if you are donating an Oriental Rug or Textile you can deduct whatever you can get it appraised for within reason. What is reasonable can and will be determined by the IRS so as my Dad used to say never take a deduction that you can not explain with a straight face.

I am not an Accountant and this should not be seen as nor taken as Tax Advice.