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 Mark Bole on August 24, 2009, 7:52 pm Please log in for more thread options Alan wrote: > Seth wrote: > 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. Thanx both for the clarification. I think this is something I need to be beaten over the head with every year. Deduction is not lower of cost or FMV, it's just FMV. But for item donations totaling over $500, taxpayer has to keep records of the cost. Donating appreciated capital assets is yet another layer of complexity. Good question for the month of August! -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 D.F. Manno on August 24, 2009, 9:09 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. Sure, it's deductible - _if_ you report finding the chair as income. So it would be a wash. From Pub. 17: "If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession." -- D.F. Manno | dfmanno@mail.com "Faith is a cop-out. If the only way you can accept an assertion is by faith, then you are conceding that it can't be taken on its own merits." (Dan Barker) -- << ------------------------------------------------------- >> << 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 removeps-groups@yahoo.com on August 25, 2009, 4:06 pm Please log in for more thread options > Sure, it's deductible - _if_ you report finding the chair as income. So > it would be a wash. From Pub. 17: "If you find and keep property that > does not belong to you that has been lost or abandoned (treasure-trove), > it is taxable to you at its fair market value in the first year it is > your undisputed possession." It might not even be a wash. If your itemized deductions without the chair donation is $1000, then with the chair it is $2500. Your standard deduction is higher and you don't get a benefit of the donation. However, you do report the chair as Other Income on line 21 -- but I think that's only needed if you intend to keep the chair. -- << ------------------------------------------------------- >> << 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? February 2, 2008, 4:00 pm Value of Individual Purchased Items For Large Lot Purchase September 27, 2008, 1:22 am Inflation Adjusted Items for 2010 Released By IRS October 15, 2009, 3:09 pm Sale of Rental Property with multiple depreciation items June 5, 2009, 10:13 am charity March 4, 2007, 8:50 pm Charity Travel June 20, 2008, 6:20 pm 401k to charity October 5, 2009, 12:50 pm travel expenses for charity December 4, 2006, 5:57 pm