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Posted by Friendly person on March 7, 2007, 11:45 pm
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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
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Posted by bono9763@yahoo.com on March 10, 2007, 2:11 am
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> 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. >>
<< ======================================================= >>
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Posted by ltsllc on March 10, 2007, 2:11 am
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> 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. >>
<< ======================================================= >>
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Posted by brownie on March 10, 2007, 2:11 am
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> 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. >>
<< ======================================================= >>
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