IRS Question - No Cost Charitable Donation

[keamima]

For IRS purposes - I’m donating books, dvds, cds which were given to me free. May I still donate them to a qualified charitable org AND take a deduction or am I excluded from the IRS deductible expense because they were not paid for?

[LdiJ]

Originally Posted by keamima

For IRS purposes - I’m donating books, dvds, cds which were given to me free. May I still donate them to a qualified charitable org AND take a deduction or am I excluded from the IRS deductible expense because they were not paid for?

If they were given to you as promotional materials (rather than as gifts from family, for example) then you have no basis in the items and therefore a deduction would not be appropriate.

[keamima]

I appreciate your response, but I cannot find where the IRS makes that distinction in writing either in the tax code or Pub 526. [url]http://www.irs.gov/pub/irs-pdf/p526.pdf[/url].

In fact I cannot find anything on the IRS site that prohibits the deduction of donated items that were gifts, promotional items or anything free for that matter. Does having a cost basis have any real bearing when it comes to donation deductions? And you certainly wouldn't have a basis even if they are gifts anyway.

Could you site the IRS code or publication reference that backs up your statement?

If anyone else has an opinion, I would appreciate it. Thanks again.

Kent

[davew128]

Let me make this really easy for you. For non-capital gain property (such as used books, dvds, and cds that are not collectibles), your deduction is the lower of your basis or the item's fair market value.

As for a citation, I generally get paid to do research.

[tranquility]

While it can be difficult at times because of the many issues, you are generally limited to the your basis of the property. A taxpayer must reduce the amount of a charitable contribution by the amount of gain that would have been recognized if the property had been sold at its fair market value at the time of the contribution. (There are many exceptions and provisos not related here.) Code Section 170(e)(1)(A); Reg. Section 1.170A-4(a)(1).

Promotional items have a basis of zero where gifts will take the basis of the giver.

[Silverplum]

Originally Posted by davew128

As for a citation, I generally get paid to do research.

You have GOT to be kidding. That's ridiculous.

That's not a citation. That's an internet brag with no basis.

[keamima]

Thank you all for your responses. Much appreciated. To clarify, these items are not promotional items. I collect up to 100 items per week from local libraries, used bookstores, and garage sales. These are items that they choose not to resell. The ones I am speaking of, I don't pay a penny for. Most are in good to excellent condition but don't fit their selling parameters for whatever reason. A few I sell but most end up going to the Salvation Army or Goodwill. I've donated about 300 already, but it's time consuming to itemize them, photograph the items (which I choose to do in case of being audited) and drive to the charity.

[tranquility]

Unless you have documentation of your basis, it is going to be zero. You might make an argumemet for charitable miles for your driving to pick them up if your intent was to donate them from the start.

[davew128]

Originally Posted by Silverplum

You have GOT to be kidding. That's ridiculous.

That's not a citation. That's an internet brag with no basis.

I see you offered an answer to the OP's question. Oh wait.

That's internet chutzpah with no basis.

[LdiJ]

Originally Posted by Silverplum

You have GOT to be kidding. That's ridiculous.

That's not a citation. That's an internet brag with no basis.

Its not nearly as ridiculous as someone coming to a free internet forum, getting the same answer from multiple posters, and then demanding a cite because it wasn't the answer they wanted.

[keamima]

Its not nearly as ridiculous as someone coming to a free internet forum, getting the same answer from multiple posters, and then demanding a cite because it wasn't the answer they wanted.

Asked for the reference only after the 1st answer, your answer, not after getting the same answer from "multiple posters". You chose not to reply but as you can see other members, senior members in fact, did.

Nothing ridiculous about asking for support to back up a statement. Otherwise when you can discern the truth from fiction?

I want to personally thank TRANQUILITY, another senior member, for making the effort and citing a reference from the code. Credibility.

[tranquility]

Senior member only means lots of posts and, usually, a thick skin. Also, probably means haven't angered enough other people regarding incorrect advice to cause him/her to be banned.