Can I deduct this?

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Subject Author Date Can I deduct this? Friendly person 03-07-2007  Re: Can I deduct this? bono9763@yahoo.com 03-10-2007  Re: Can I deduct this? ltsllc 03-10-2007  Re: Can I deduct this? brownie 03-10-2007
Posted by Friendly person on March 7, 2007, 11:45 pm Please log in for more thread options I have a small business. I have an office in my apartment, my only office. In order to set this office up, I had to give away stuff, property and make space for the office. I had no time to sell property, so I gave it to the Salvation Army (and got receipts). Can I deduct the loss? If I would have not opened the business, I would not given the property away. Please advice. Kindly Ette << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by bono9763@yahoo.com on March 10, 2007, 2:11 am Please log in for more thread options > I have a small business. I have an office in my apartment, > my only office. In order to set this office up, I had to > give away stuff, property and make space for the office. > > I had no time to sell property, so I gave it to the > Salvation Army (and got receipts). Can I deduct the loss? If > I would have not opened the business, I would not given the > property away. No one forced you to give the stuff away. You could have rented a storage room and saved it. The only deduction you can take is a charitable contribution on Schedule A for the fair market value of the stuff you gave to the Salvation Army. If the value was over $500, you will also have to file a special form itemizing your donations. If any one item was worth more than $5,000, you would need an appraisal in order to deduct it. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by ltsllc on March 10, 2007, 2:11 am Please log in for more thread options > I have a small business. I have an office in my apartment, > my only office. In order to set this office up, I had to > give away stuff, property and make space for the office. > > I had no time to sell property, so I gave it to the > Salvation Army (and got receipts). Can I deduct the loss? If > I would have not opened the business, I would not given the > property away. The property you gave away is a charitable contribution, not a loss, so it would be reported as an itemized deduction on Schedule A line 16. As for your receipts for the property you donated, it must meet the substantiation requirements, ie, Name of charitable organization, date of contribution, etc. See pages A-4 and A-5 in the Form 1040 Instructions booklet for more info. Depending on the amount of your total itemized deductions on Schedule A line 28, you might be better off taking the standard deduction amount for your filing status. Rudy www.LizcanoTaxServicesLLC.com Disclaimer: The posted answer is for educational purposes only and Lizcano Tax Services, LLC and/or Rodolfo Lizcano have not been engaged to render any tax, accounting, legal, or other professional services. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by brownie on March 10, 2007, 2:11 am Please log in for more thread options > I have a small business. I have an office in my apartment, > my only office. In order to set this office up, I had to > give away stuff, property and make space for the office. > > I had no time to sell property, so I gave it to the > Salvation Army (and got receipts). Can I deduct the loss? If > I would have not opened the business, I would not given the > property away. You can deduct the FMV of what you gave to the salvation army on schedule A. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted Is it possible to deduct my son's disability? November 18, 2006, 11:48 pm Can I deduct a lost RE deposit? 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