What gives me a bigger tax break?
Answer:
As long as you can itemize deductions, either way can work.
If you donate the goods, you have to value them at their current fair market value for the deduction. However, once you sell the goods and donate that money, you can write off the actual donation.
In my opinion, I would save the hassle of having a yard sale and just donate the goods because you will may still have unsold items that you will probably donate anyway.
ok
the new rules for tax year 2006 when you donate clothes you HAVE to have a receipt from place you donated to. The fair market value no longer applies. It sucks I know because the last 2 years I have used that. Their is only 1 place in our town that you can donate to. They are only open 2 hrs a day. So I would drop my stuff off on their doorstep like everyone here does.
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