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Imagine I consign items to a charity consignment store. They sell all the items for $100 and send me a check for $60. They are a charity (501C-3) and kept 40% of the sale, so is the 40% Tax deductible?

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Always start with the receipt you get from them. They will want to document their income and expenses. If you donate enough stuff they will want to provide documentation that you can use to file your taxes.

You have options.

  • Donate the item and be able to itemize the Fair Market Value. You will need receipts if you donate enough stuff.
  • Sell on consignment, keep some and donate a portion of what they sell the item for. You will need the detailed receipt to determine how much can be itemized.

Note I use the term itemize to reinforce that unless you have enough itemized deductions none of this matters.

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  • I keep forgetting that not everyone can itemize. Good catch!
    – keshlam
    Commented May 23 at 14:48

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