Are found items given to charity still deductible

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Subject Author Date Are found items given to charity still deductible Bobby 08-24-2009  Re: Are found items given to charity still deducti... HLunsford 08-24-2009  Re: Are found items given to charity still deducti... Mark Bole 08-24-2009  Re: Are found items given to charity still deducti... Seth 08-24-2009  Re: Are found items given to charity still deducti... Alan 08-24-2009  Re: Are found items given to charity still deducti... Mark Bole 08-24-2009  Re: Are found items given to charity still deducti... D.F. Manno 08-24-2009  Re: Are found items given to charity still deducti... removeps-groups@yahoo.com 08-25-2009
Posted by Bobby on August 24, 2009, 1:19 pm Please log in for more thread options Are found items given to charity still deductible? Does the fact that I found something in the trash make it any less deductible when I have given it to a charity? I often pick good things out of the trash and keep them or give them to goodwill. But this time, I found in the trash a electric wheel chair worth in its current condition 1500 dollars. It had a special attachement and was 4000 or 4500 new iirc, and they sell them used also for about 1500. I gave it to a charity that lends such wheelchairs to people who need them and got a receipt. Thank you. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by HLunsford on August 24, 2009, 2:04 pm Please log in for more thread options Bobby wrote: > Are found items given to charity still deductible? > > Does the fact that I found something in the trash make it any less > deductible when I have given it to a charity? > > I often pick good things out of the trash and keep them or give them > to goodwill. > > But this time, I found in the trash a electric wheel chair worth in > its current condition 1500 dollars. It had a special attachement and > was 4000 or 4500 new iirc, and they sell them used also for about > 1500. > > I gave it to a charity that lends such wheelchairs to people who need > them and got a receipt. > > Thank you. > Since found property is taxable income, you first report it on your 1040, line 20, other income. After that, should you give it to charity, the deduction already has the correct value attached to it. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Mark Bole on August 24, 2009, 2:06 pm Please log in for more thread options Bobby wrote: > Are found items given to charity still deductible? > > Does the fact that I found something in the trash make it any less > deductible when I have given it to a charity? > > I often pick good things out of the trash and keep them or give them > to goodwill. > > But this time, I found in the trash a electric wheel chair worth in > its current condition 1500 dollars. It had a special attachement and > was 4000 or 4500 new iirc, and they sell them used also for about > 1500. Amount deductible for charity is lower of cost or fair market value (FMV). Since your find had cost basis of zero to you, no deduction... ...unless you reported your find as treasure trove taxable income first, then you could use it as a deduction. -Mark Bole -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Seth on August 24, 2009, 5:06 pm Please log in for more thread options >Amount deductible for charity is lower of cost or fair market value >(FMV). Since your find had cost basis of zero to you, no deduction... But if I hold it for a year, I can deduct FMV even if that's in excess of cost, right? (And if I auction it on eBay with the proceeds going _directly_ to the charity, then I've established FMV directly, and it's as if I donated the item and the charity sold it immediately, I think.) Seth -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on August 24, 2009, 5:13 pm Please log in for more thread options Seth wrote: > >> Amount deductible for charity is lower of cost or fair market value >> (FMV). Since your find had cost basis of zero to you, no deduction... > > But if I hold it for a year, I can deduct FMV even if that's in excess > of cost, right? (And if I auction it on eBay with the proceeds going > _directly_ to the charity, then I've established FMV directly, and > it's as if I donated the item and the charity sold it immediately, I > think.) > > Seth > Technically, it's over one year and held for personal use or investment. That would make it a long term capital asset for which you could deduct the FMV subject to the 30% of AGI limitation. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Items that may be of interest February 8, 2007, 7:58 am Depreciation for Items Purchased Prior to 2007 January 12, 2008, 5:00 pm Married filing Separately -- where to put shared items? 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