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    non-cash contribution

    A client comes in with a receipt from a charitable organization's logo: receipt# 1021; 40 lbs clothes and toys, value 1000. Are you comfortable deduct it? Most organization don't give value for non-cash donation.

    #2
    Originally posted by liberty View Post
    A client comes in with a receipt from a charitable organization's logo: receipt# 1021; 40 lbs clothes and toys, value 1000. Are you comfortable deduct it? Most organization don't give value for non-cash donation.
    NO!

    I have one client that basically gets all the junk from family, friends, neighbors and street sidewalks after garage sales and donates to Salvation Army, Big Brothers, Hartspring etc.

    I have her count exactly how many pieces of what and fill out a spreadsheet with Salvation Army price list. The first year I asked her to do, she initially refused and I told her to go somewhere else or pay my assistant $20/hr to do her work! She chose to do it herself.

    There is NO WAY I am going to accept a dollar amount over $500/bag for X bags of clothes.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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      #3
      If the client was the one put value on the receipt, then I won't accept it without detailed valuation. But if the organization put the value on the receipt, wouldn't that shift the responsibility to the organization to prove it.

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        #4
        Donees don't determine the FMV of donated property. That's the donor's responsibility ... or, in some cases, an appraiser's.

        $1,000 seems awfully high for 40 pounds of used clothes and toys. If this were my client, I would insist on an item-by-item list of the donated property together with a FMV for each item.
        Roland Slugg
        "I do what I can."

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          #5
          Agree with that.

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            #6
            Originally posted by Roland Slugg View Post
            Donees don't determine the FMV of donated property. That's the donor's responsibility ... or, in some cases, an appraiser's.

            $1,000 seems awfully high for 40 pounds of used clothes and toys. If this were my client, I would insist on an item-by-item list of the donated property together with a FMV for each item.
            Yep, I agree with that too!

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