Donating Household Clutter and Taking a Tax Deduction

Every year, I have a yard sale. It usually coincides with our neighborhood's big sale and I make out quite nicely with the profits. However, this year we were in Pittsburgh and I missed out on the event...and the cash.

So instead, I hauled our stuff to the Salvation Army. I've been tackling clutter since January and I had the boxes stacked in my garage to prove it. While I love the instant cash that you can get from a yard sale, this year a tax deduction will have to do.

It's been awhile since I've taken a tax deduction over having a yard sale, so I did a little research. Unfortunately not everything in your home is considered a tax deduction if donated. The queen sized comforter that I no longer used can be deducted, but the kids' outgrown mega block set cannot.

There are rules to follow when taking a tax deduction for your donated items. According to the IRS Publication 526, "if you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution."

Clothing and certain household items can be deducted as long as they are in "good used condition or better." Household items that can be deducted if donated are furniture and furnishings, electronics, appliances, linens, and other similar items. Household items NOT included would be food, paintings, antiques, other objects of art, jewelry, gems, and collections.

(There is one exception to that rule: "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.")

As described by the IRS, "fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts."

"The fair market value of used clothing and other personal items is usually far less than the price you paid for them. There are no fixed formulas or methods for finding the value of items of clothing. You should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops."

Household items. "The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. "

"You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Do not include any of this evidence with your tax return." Keep it with your tax documents.

My experience: The Salvation Army gave me a dated blank receipt for the donated goods. There is space for me to write down all of the items that are deductible. They also include a valuation guide for items donated to the Salvation Army. It is a lengthy, descriptive list of clothing and furniture items with price ranges from low value to high value, depending on the item's condition. For example, a ladies' blouse has a $2 low value up to $7.50 high value. I looked at every item that I was donating and determined what condition it was in. Most of our clothing was in fairly good condition, so I used a middle range. My deduction tally for this haul was $115.

Do you sell your household clutter or take a tax deduction? Let us know about your experience in the comments.

Remember, I am not a tax professional, please refer to the IRS Publication 526 or your tax professional for more information.
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The Bathroom Medicine Cabinet {Tackle that Tough Spot}

Are you one of those people who is always curious as to what is hiding behind someone's medicine cabinet when using their bathroom?

Today I am openly sharing with you our medicine cabinet. Honestly, it is somewhat boring inside and there isn't a lot of medicine either. But judging by the dates on some of the lotions and potions, it was time to purge the cabinet.

Our medicine cabinet is fairly large.

It holds a lot of stuff that gets forgotten about...or ignored.

I removed everything and wiped down the inside.

As I said above, we don't keep medicine in this cabinet. We don't use a lot of medicine and if we do have any, we keep it out of reach of our kids. What I do have is a lot of face creams, potions, and lotions. I'm a sucker for an anti-wrinkle cream. But I discarded anything that we don't use or that was outdated.

I organized the products that went back in the cabinet, by category, such as eye care, first aid, dental, my daily products, and my husband's stuff.

The medicine cabinet is now cleaned and organized and it took less than 30 minutes.

What does your medicine cabinet look like? Go tackle it now!

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What Are Your Favorite Organizational Tools?

Today, I'm answering a question posed to me by BlogHer's Life Well Lived Campaign, "what are your best resources to help you get organized?"

Wife. Mother. Small Business Owner. Blogger. Runner. Wannabe Chef.

These are things that dictate my time and schedule. Some people (okay, my husband) might say that I'm old school when it comes to organizational tools, but when it comes to organizing my life I still prefer some rather archaic tools: paper and pen.

I still use a paper planner:

I use a paper monthly to-do list to keep myself on task:

And I use binders to keep it all in check.

But I'm married to a tech geek who gave up paper years ago, so I have acquiesced to a few tech products. I admit that I'm madly in love with my iPhone, iGoogle, and Evernote. While I doubt I'll ever give up my paper, I also see the value in technology. And the combination of paper and tech works well for me.

What are your best resources to help you get organized? Let us know in the comments.

Also, hop on over to BlogHer to read 35 Resources to Help You Get Organized. While you are there, enter the current Life Well Lived Moments Sweepstakes for a chance to win an iPod Touch.

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Tackle that Tough Spot: The Utensil Drawer

I was simply looking for a spatula. You know the one; it's your absolute favorite spatula and it is lost some where in the utensil drawer:

My utensil drawer had gotten a little out of hand, so I tackled it. It didn't take long to realize that it had been a looong time since I cleaned it out.

EWWWWWW! How does a drawer get dirty when everything that is placed in it comes directly from the clean dishwasher?

Believe it or not, this drawer is now clean, purged, and organized.

Don't believe me? Check out this pile that is headed to the yard sale box:

My kids are 6 & 4; they haven't used baby spoons in over 2 years. These spoons should have been purged long ago.

What does your utensil drawer look like? Go tackle it!

Join me every Thursday for another task at:

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Tackle that Tough Spot: Purge the VHS tapes and Unused Media

When was the last time you watched a VHS tape? 

Our VCR started eating tapes a few years ago and we were not about to replace it or try to get it fixed.  But for some reason I never got rid of the tapes. As I was cleaning out our entertainment center I realized the craziness of keeping them, so I tackled it and the tapes are headed for the yard sale/giveaway box.

I also went through the stacks of CDs and DVDs. We download our music now, so there is no need for piles of CDs that we don't listen to. (That pile above is just a smidgen of what we have.)  The unopened DVDs of Seasons 1, 2, and 3 of The Office and Seinfeld are also heading to the yard sale box. We don't watch them, we have never watched them, and if we wanted to watch them, they are on cable TV every night. Honestly, I'm not quite sure how we got them.

Do you have stacks of VHS tapes, CDs, and DVDs lying around? Go tackle it!

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Tackle That Tough Spot: Plastic Ware

Today's Task: Reduce the proliferating Plastic Ware

Please tell me that I'm not the only one with plastic ware stuffed in every empty crevice of the kitchen cupboards.

My husband, who normally doesn't comment too much on the state of our home, was even fed up with the amount of plastic ware that we had. I could hear him gripe every morning as he was packing his lunch about not being able to find a lid that matches a bowl.

One family doesn't need this much plastic ware. I'm not even sure how we acquired it, because I don't remember buying any of it.

I pulled it all together and stacked it in the yard sale box. I'll mark it all FREE just to get rid of it.

Instead of the plastic ware, I'll use the Pyrex. It stacks easily in the fridge or in the cupboards. It will be so much easier to find the matching lid.

How much plastic ware do you have? Go tackle it!

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Tackle That Tough Spot: Sippy Cup Wars

Today's Task: Win the war on sippy cups!

What is it about sippy cups? From the time our children start drinking from a cup, it seems that we collected every character and color that Target offered.

Sippy cups also seem to breed other forms of cups, plates, bowls, lids, and straws. It's a total mess.

My kids are 6 and 4, so our plastic drinking cup phase is winding down and I couldn't be happier.

After removing it all from the cabinet, I chose to keep a few things:

but this pile is headed straight to the yard sale box!

Join us next week for another installment of:

Do you have trouble controlling the kids' cups? Go tackle it now!

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Tackle That Tough Spot and Kick Clutter to the Curb!

Do you have a tough spot in your home? A spot where stuff seems to accumulate, congregate, and multiply as time goes by.  The stuff has been around so long that no one notices it anymore; it has become like a grey noise.

Follow along with me as I tackle tough spots around our home that are sucking the life out of it. My objective: get rid of clutter and kick it to the curb...literally. I want to get rid of the grey noise.

The tasks could take us 15 minutes or up to an hour, depending on our clutter.

Join me, every Thursday until all our Tough Spots are gone!

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How Do You Organize Paperwork, Both Online and Off?

Today, I'm answering a question posed to me by BlogHer's Life Well Lived Campaign, "how do you organize paperwork, both online and off?"

I have written before about how I organize our offline paperwork:

• My Binder System for Organizing My Office and My Life
• How Long Should You Keep Financial Documents 
• 3 Simple Office Supplies for Smooth Tax Prep

2012 is the year that my husband and I are trying to go more paperless with our personal and business paperwork.

Currently, at our business I have started to scan more documents and save them on the computer. After I scan, I shred the documents. That was a huge step for me and something I never thought I would do, but honestly we're running out of room to store all of our office paper work. In the business that we are in, there are laws on how long we need to keep documentation. Our lack of space has pushed us to start scanning and shredding.

At home, it is another story. I have yet to purchase a scanner for my home office, but my husband is pushing me in that direction. However, I have stopped printing receipts that I receive online and instead I have created folders in my email account to file the receipts.

Baby steps...

How do you organize paperwork, both online and off? Let us know your tips and tricks in the comments.

Also, hop on over to Life Well Lived and read, Ten Ways to Organize Your Papers - Offline and Online. While you are there, enter the current Life Well Lived Moments Sweepstakes for a chance to win an iPod Touch and a $50 iTunes gift certificate.

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Organizing Spices | Kitchen Economics

The cabinet next to my stove is very narrow and while it was the best cabinet to keep spices, it was not the most functional. It stored all of my spices, but I couldn't see or find anything.

One day while browsing in Target something caught my eye that looked like the answer to my problem. A lazy susan. Brillant! So I bought two.

I alphabetized the spices to make them easier to locate. The taller bottles go on the lazy susan on the bottom shelf and I keep the shorter and medium sized bottles on the two-tiered lazy susan on the second shelf.

Every spice now has a place. I can see them clearly and I don't have to worry about finding a 12 year old bottle of cayenne.

The lazy susans worked for me, but The Learned Lady recently posted a helpful tip for organizing spices in the comments in my post on organizing a pantry:

"For me, when I organize my spices, I have them divided into three categories (I have 3 skinny baskets that hold my spices): special blends or spices - old bay, my Asian spice blend, my Cajun blend, taco seasoning, etc., go in one basket; then my most commonly used savory spices - garlic & onion powder, cayenne, paprika, thyme, basil, etc.; then my commonly used sweet spices go in the last basket - cinnamon, vanilla extract, allspice, cloves, etc. That way, depending on what I'm cooking, I can grab the basket I need (like if I'm baking) or just a couple of spices, but I know which basket to go to. This method has worked better for me than alphabetizing my spices."

How do you organize your spices? Let us know in the comments.

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Resolve to Clean Off Your Desk

Last week, I gave you a snapshot of my messy desk in my Keeping It Real post. It was quite a sight.

But I am happy to report that I sorted through the piles, tossed any non-necessities, stored away my kids' artwork and some Christmas decorations, filed some financial documents, found a new home for some puzzles, and cleared the way for fresh thinking and productivity.

Commenter, KrantCents, wrote "if my desk is messy it affects my thinking." I totally agree. If I want to nail my 2012 goals, then I need a clean space to think, create, and execute.

What does your desk look like? Take a moment (or two) and clean it off. Let us know in the comments how good you felt afterwards.

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How Organized Is Your Purse? Take a Peek Inside Mine

Recently, I participated in the BlogHer and P&G Life Well Lived Blogger Panel where they explored the topic of Getting Organized: When Your Purse Weighs More Than Your Body

The panel was asked: What are the biggest issues you have in keeping your purse organized and neat and what is the best advice you have to keep your purse neat and orderly? What 3 things in your purse are must haves and what 3 could you live without?


I keep a fairly organized purse, but my biggest issue is paper clutter (e.g. receipts, coupons, to-do lists). I found that the bigger the purse I carried, the more I put in it, so I have gone small. My purse now contains my wallet, a small cosmetic bag, a gift card carrier, my phone, and sunglasses. The cosmetic bag keeps my purse organized. It has travel wipes, feminine hygiene stuff, lip gloss, pen, travel hand lotion, and some mints. All of that stuff would be floating around, if I didn’t keep it contained in my cosmetic bag.

The 3 must haves in my bag would be my wallet, cell phone, and lip gloss. I regularly clean out my purse, because I can do without all of the paper clutter.

My current bag of choice:

I have to confess that I am a reformed bag lady. In my past life, I was a handbag buyer for a department store. I was responsible for the handbag assortment for over 70 stores. Some of the companies that I dealt with were Liz Claiborne, Stone Mountain, Coach, Dooney & Bourke, Fossil, and Rosetti. At the time, I was absorbed in the fashion retail world and carried many different bags, depending on my outfit or occasion.

Now, my life is much different. The woman who used to own over 25 handbags, now only carries one and I long ago sold or donated most of those bags. I like this bag, because I can cross it over my body and I am then hands-free. It also happens to be my favorite color. I can see myself carrying this bag for years to come.

Inside my bag (the receipt was promptly filed as soon as the picture was taken):

This cosmetic bag is the reason my purse stays so organized. Can you imagine all of this stuff just floating around if it weren't contained?

This is my favorite wallet. I like it because it has room for me to keep my cash envelopes.

Now it's your turn. What are the biggest issues you have in keeping your purse organized and neat and what is the best advice you have to keep your purse neat and orderly? What 3 things in your purse are must haves and what 3 could you live without? Let us know in the comments.

And then head on over to enter the discussion about Getting Organized: When Your Purse Weighs More Than Your Body.

Also, be sure to read BlogHer's Life Well Lived Campaign, where they are exploring the topics: Looking Your Best, Getting Organized, and Getting Happy. While you are there, be sure to enter to win the $250 Visa gift card in the Life Well Lived Moments Sweepstakes.

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Planning for a Stress-Free Morning

This is our family's final week of summer. We are savoring as much of this last week as we can, because life changes dramatically for us on Tuesday, September 6, 2011. Our oldest daughter starts Kindergarten and my youngest starts her first year of preschool, so in other words, our mornings are about to get hectic.

I run a loose-y goose-y ship in the summers when it comes to bed times and wake up calls. I let the sun dictate the kids' bedtime and their tired heads have been hitting their pillows around 9:30 pm, not the school year bedtime of 8pm. Our morning routine will be the most challenging transition for our family. After long days spent playing in the backyard sprinkler, or at the pool or park and late nights, they have been sleeping in until 9:30 am or even later.

Unfortunately for my little monkeys their alarm will be set for 7:00 am starting next Tuesday. I am a total morning person. I get up by 6 am all summer long to run, so their new wake-up time won't affect me much. I know this will be a struggle for them, especially in the beginning. A jet airplane could be taking off right outside my oldest daughter's bedroom and she would still be snoring away.

I am anticipating a long transition period. I need to be prepared for some potentially hectic mornings ahead.

Recently, I participated in the BlogHer and P&G Life Well Lived Blogger Panel where they explored the topic of Prepping, Prioritizing, and Delegating for a Stress-Free Morning.

The panel was asked: What is the biggest time waster/issue you have when getting you and your family ready in the morning? What tips do you have to save time in the morning to get everyone out and ready on time?

I offered some advice that has worked for our family in the past and something that I will do again starting next week, I "make breakfast a breeze by keeping grab and go breakfast food on hand, like cheese sticks, hard-boiled eggs, yogurt tubes and bananas for those really hectic mornings where there is no time to sit and eat".

Now I'd love to hear your advice in my comments section. What is the biggest time waster/issue you have when getting you and your family ready in the morning? What tips do you have to save time in the morning to get everyone out and ready on time?

Also, be sure to read BlogHer's Life Well Lived Campaign, where they are exploring the topics: Looking Your Best, Getting Organized, and Getting Happy. While you are there, be sure to enter to win the $250 Visa gift card in the Life Well Lived Moments Sweepstakes.

Good Luck!

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How Long Should You Keep Financial Documents

Are your financial documents piled up in the corner of your office or under your desk? A few years ago, I was just filing papers in my cabinet, but not purging along the way. It got to the point where I couldn't close the drawers of my filing cabinet, so I took some time to weed them out.

As I was removing the files, I wondered, What Financial Records Should I Keep and How Long Should I Keep Them For? So much is done electronically now, but there are documents where a paper copy is needed. So, I googled my question and here is what I found.

Bank Statements - One nice thing (among many) about the electronic age is that banks keep statements online up to a couple of years. Our personal bank has statements online all the way back to 2006. However, you should print any canceled checks or year-end statements that you would need for tax purposes, ie - charitable contributions, home improvements, business expenses, mortgage payments, etc. If you are not going to print the statements, you really need to check them each month for errors and fees.

Bills - Utility bills can be tossed the following month when you receive your next statement and it shows that the bill was paid, unless you need the bill for tax deduction purposes, then refer to Taxes below. Any bills for big purchases like jewelry, appliances, computers, etc, should be kept permanently for insurance and warranty purposes. Permanent home improvement bills should also be kept while you still own your home.

Credit Card Statements - These can also be found online, so I'm not sure a paper copy is necessary, unless you need it for documentation for tax deductions, then see Taxes below. If you are not printing it, you should still review it closely for any discrepancies and unnecessary or incorrect fees. You should keep any credit card receipts to match up with your statement. Read more about receipts below.

Household Records - Keep all records from the purchase of your home and any receipts for permanent home improvements and selling expenses for as long as you own your home. This is very important and something that I learned while researching for this post. When you go to sell your home, the cost of permanent home improvements and any selling expenses incurred will be added to the original purchase price of your home. This final number will help to lower your capital gains tax.

Legal documents, such as wills, passports, birth certificates, marriage license, proof of paid mortgage, deed to your home, title to your vehicles should be kept permanently in a safe location such as a safe or safety deposit box.

Pay Stubs - Keep for the year until you get your annual W-2. If the information matches, you can shred your pay stubs. If the information doesn't match, head to your human resource department for correction.

Receipts - Keep until the warranty expires or you can no longer return the item. Any receipt that supports a tax deduction, should be kept with your tax returns. For other receipts from a credit card for example, groceries or gas, keep until you get your next statement to look for any errors.

Retirement/ Savings/Brokerage Statements -

• Keep records permanently for nondeductible contributions to an IRA to prove that you already paid taxes on this money when it is time to withdrawal.
• Keep the quarterly statements for your 401k or other IRA accounts until you receive the annual statement. Check for any discrepancies. If there aren't any, shred the quarterly statements, but keep the yearly until you retire or close the account.
• Keep any brokerage statements until you sell the security. You'll need proof of gains or losses at tax time.

Taxes - You can be audited by the IRS for up to three years after you file your return. BUT if the IRS has reason to suspect that you under reported your gross income by 25% or more, the IRS has up to six years to audit your return. AND if you fail to file or they suspect a fraudulent return, there is not time limit on the possibility of an audit. ALSO, if you are self-employed, you should keep your returns and supporting documents for six years.
It is important to note that you should keep your returns and any supporting documents for these time periods. Supporting documents include any receipts, statements or canceled checks that support income or a tax deduction that you took.
Here is a link to IRS.gov where it explains their Period of Limitations for tax returns.
Personally, I know we have filed honest returns, but because we are self-employed, I am holding on to our returns indefinitely. I have our returns and all supporting documents neatly filed in the cabinet. How long have you held on to your tax returns?
Some Ideas For Keeping Your Financial Records Organized:

1. For our personal taxes, we keep a present year file for tax deduction documents, such as receipts for charitable contributions, mortgage tax payments, receipts for school and real estate taxes, Goodwill donations, etc. As we receive them, they are put into the file and at the end of the year, I have everything in one place.
2. Every year for our small business, I create a 4 inch binder, with tabs for each of our expense categories, to store the statements, receipts and invoices. I use a small accordion file with 12 monthly files for credit card receipts.
3. In your filing cabinet, group your major files together by category with sub-files. Some examples:

• Assets - with sub-files like your checking, savings, retirement, etc.
• Insurance - sub-files would be Auto, Health, Home-Owners, Life, etc.
• Liabilities - sub-files would be Auto Loan, Credit Card, Mortgage, Student Loan, etc.
• Home improvements -with sub-files for each major improvement.
• Medical records should be filed by family member.
• Professional records with sub-files such as resume, employer records, degree records, etc.
• Taxes with sub-files for each year.

DO NOT FORGET to shred anything that you are throwing away that has your personal information. This will help you avoid possible identity theft. Shredders can be found just about everywhere and are a worthy, inexpensive investment.

If you have any questions regarding a particular document and feel uneasy about whether or not you need to keep it, then please seek advice from a professional.

Do you have a method for filing your financial records that works well for you? I would love to hear about it. Please let us know in the comments

sources: Suze Orman, Bankrate, IRS.gov

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Organizing With Baskets ~ Ultimate Blog Swap

Today I’m participating in the Ultimate Blog Swap. You’ll find me posting over at Adventures of Life, Love and Librarianship about Asking for a Discount in Today's Economy, and I’m excited to welcome Liz from Hoosier Homemade to Family Balance Sheet:

Hi there, Family Balance Sheet fans! I'm Liz from Hoosier Homemade, and am so excited to be chatting with you today. I cook and bake...A LOT...and have tons of cookbooks too. I find my inspiration and recipes from many of them, especially my cupcakes.

But sometimes, stacks and stacks of cookbooks can be messy and pretty annoying. I found the easiest way to store my cookbooks, is in baskets.



Big ones...small ones...pretty much any size, any shape, you name it...I use it! Do you see the Baker's Rack in the picture too? I painted it and added some fun baskets to it for organizing as well.

The picnic basket on the bottom was passed on from my Mom, and I treasure it. The picnic basket in the middle was an estate sale find and the little one on top...came from a garage sale.

I love those little books that you can pick up at the checkout of most stores, many times they have lots of great recipes, and often even pull out recipe cards.



They fit perfectly in the small basket! Close the lid and the mess is out of sight!

Do you use baskets to organize your house? What is your favorite tip?

You can find Liz over at Hoosier Homemade where she cooks, bakes and decorates your home. When she's not serving up cupcakes, she is joining her husband over at It's A Blog Party, where there is a different linky party everyday. And watch for her new blog...Pocket Change Gourmet, launching in July! Follow Liz on Twitter and Facebook.Visit Life...Your Way to see all of the Ultimate Blog Swap participants!

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