Deducting donations???

[too-old-now]

The info below is quoted from the into of Publication 526.

"Useful Items - You may want to see:

Publication

• 78 Cumulative List of Organizations
• 561 Determining the Value of Donated Property

Form (and Instructions)

• Schedule A (Form 1040)
  Itemized Deductions
• 8283
  Noncash Charitable Contributions

See How To Get Tax Help near the end of this publication for information about getting these publications and forms."

T-O-N, do you mean form 8283?? If so, here is the link for that: http://www.irs.gov/pub/irs-pdf/f8283.pdf. It is for Noncash Charitable Contributions.

Do you have a form similar to this that you keep for each donation? Do you have the organization(s) sign your donation list? Do you keep ALL receipts for the year and where?

Bring this up from last year. Yes, I meant 8283. My organizations all send me a thank-you letter acknowledging the description of the items (20 cases soup, etc.) and the date donated. I keep all receipts for the year, not just the ones I donate from. I also take a photo of the donations and keep it with the files as proof in case it got questioned.

[Supergirl9801]

Okay so many of us on here get those lovely Bayer meters and then donate them right? So..my question..can they be deducted even though we're not actually paying anything OOP for them?? I mean they still have value so I'd think we could but I'd love to know from someone who's "in the know" or has actually done it before.

[ThePennyHoarder]

Yes, I am fairly certain you can count that as a deduction. Think of it this way - you could have sold the meter and kept the cash, therefore it is an asset that you willingly gave away.

[meggers]

I have read on this board that this practice is illegal. And I can see why it is. If nothing is paid, nothing should be deducted.

My brother dabs in antiques & I recently recalled him mentioning that the law was changed awhile back about donating items that he couldn't sell. He was no longer allowed to give fair market value when he paid less than that. I would think this would fall under the same category.

I would definitely be absolutely, positively sure before I messed with the IRS.

[motherofmolly]

use to do taxes for a living for a private local firm

donations are one of those harder things to write off. remember anything under $250 dollars, you do not need to itemize (write everything down and who it went to and their tax id number)...but you still need an accurate accounting of what it is and the value (not what it is brand new).

but anything over $250, you have to account for who, tax id number, what, amount of it, the "value" of it....

remember you can only write donations off to an organization that is legally considered a charity (best to have that tax id if there is a question)

the easiest way to think of it is this way...how much would you pay for that item at goodwill or a garage sale?.....or keep your receipts and that is the amount you can use to write off.

[Critter66]

It is the lower of your cost or the fair market value that is a deduction.

[Mothernature]

It is the lower of your cost or the fair market value that is a deduction.

To be safe in case of an audit, deduct what you paid (and prove with receipts). If it is an item that you do not remember what you paid, FMV is what you should deduct.

[Love4One]

okay, some are saying to deduct what you paid. but the deduction is on what something is worth or the "fair market value", not what we paid for an item. for example, if something is gifted to me (like an expensive heirloom from my grandmother like china) and I decide to donate it to a local charity, obviously I didn't pay anything for it, but it certainly has value. Even if something brand new is gifted to me, doesn't mean I can't deduct it because I didn't "pay" for it, right?

so my question is on the bayer meters, should we deduct the sale price or the amount the receipt indicates we "saved" for the meter (because that is afterall what a lot of people pay for the meters when they're not on sale)?