Garage Sale Breakdown

I have been on the garage sale fence for a while, because, in part of the tax deduction that donations will yield us.  For a long time I have processed the amount I would have to yield at a garage sale compared to the amount I would receive as a tax deduction and I’d like to go through that today.  For illustrative purposes, let’s say we are in the 15% tax bracket and the item we are selling is a ladies dress shirt.  You estimate it will bring in $1 at a garage sale, but the donation will give you a tax deduction of $4. 

Since the donation gives you a tax deduction, the actual amount of cash you will see in your refund, or that you will save on a tax payment is 15% of $4 or $0.60.  In this case, it would be better to try to sell the shirt at a garage sale. 

This all assumes that I can itemize my deductions.  If I cannot itemize, then this all a moot point because it will always be better (monetarily speaking) to re-sell the items, either by garage sale or consignment.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s