I’m not a CPA, but I am a tax attorney. I typically handle tax settlements, and don’t prepare returns very often, so the following is an educated guess, not an expert opinion.
There is an argument to be made that donated goods are deductible based on their value, and not the price paid at retail. However, my guess is that the deductions wouldn’t survive an audit if the IRS decided to go to the mat on it. I doubt they would go to the mat on it ... but they could, and if they ask her to fully justify the deduction, she may not be able to to their satisfaction.
I think she’d need to be able to deduct above the standard deduction (she’d need to look up her standard deduction) to make itemizing worthwhile.
SnakeDoc
Thanks for sharing your educated opinion about this.
Really, the only thing I've ever seen about the IRS and couponing was at some point a long time ago they attempted to tax monies received from mailing in rebates.
At the time I read the news article, it was mentioned that SOME people get some pretty big savings accounts going which are solely "fed" by rebate checks, and that's how the whole issue started. Anyway, it was ruled AT THAT TIME, I have NO idea if it has changed, that Rebate Checks are NOT taxable income.
I've read that if you donate used household goods and old clothes to the Salvation Army, that you cannot deduct what you paid for them, but only the fair market value of what they'd be priced at a Garage Sale AKA Yard Sale.
But all those rules & regs change so frequently.
I got irritated when I learned about the IRS going after "Rebater Mom & Pops" because there obviously are BIG FISH like Bernie Madoff and the Wallstreet Crooks who make off with millions upon millions upon millions......