I'm not sure how to report

[fliszt]

a transaction. Client is musician. On the depreciation list is a "mixer amp group" purchased 9/2002 for $1225. He took "part" of this group and donated to church in 2008. Has receipt from church showing value of $485. This "group" has already incurred $760 in prior depreciation. How do I report this transaction?
Sorry, but I'm drawing a blank on this one.
Thanks for your help.
Larry

[Nashville]

Report FMV

The FMV value is what is reported on Schedule A as a non-cash charitable donation.

Doesn't matter what the basis or adjusted basis may be for purposes of reporting on Schedule A. I believe the non-cash (Form 8283?) has a box asking for original cost and purchase date, and someone will have to estimate what that portion of the item consisted of the whole.

Example: Item in question cost $500, and remainder of the set cost $1000, total $1500. This means that the component was 1/3 of the total value. Musician saved by buying the entire set for $1225. The original cost of the item in question was 1/3, or $408.33.

[fliszt]

Wow Nashville,

you're great!! Thank you very much for your help. I really appreciate it!!!
Larry

[Nashville]

Aw Shucks

Larry thank you for your kind words.

Never fear, just when you hear someone say "You're great" you get humbled. Happens in the tax business all the time.

Say Hello to Apple Valley for me.

[Bucky]

Not sure that is correct. See page 4-16 of The Tax Book under Contributions of property reduction to FMV.

[fliszt]

Bucy, I see

what you mean. I'll have to find out what the portion of the "system" is being donated then subtract that value from the business assets being depriciated.
Thanks
Larry

oops. mispelled "Bucky"
sorry.

[Davc]

The FMV value is what is reported on Schedule A as a non-cash charitable donation.

Doesn't matter what the basis or adjusted basis may be for purposes of reporting on Schedule A. I believe the non-cash (Form 8283?) has a box asking for original cost and purchase date, and someone will have to estimate what that portion of the item consisted of the whole.

Example: Item in question cost $500, and remainder of the set cost $1000, total $1500. This means that the component was 1/3 of the total value. Musician saved by buying the entire set for $1225. The original cost of the item in question was 1/3, or $408.33.

Ahem. From TTB 1040 4-16:

Ordinary income property. The deduction equals FMV minus the
amount that would be ordinary income or short-term capital gain
if the property were sold. Examples include inventory, works of
art created by the donor, and capital assets held for one year or
less. If the property given is a depreciable asset held more than
one year, the depreciation that has been allowed or allowable
is subject to recapture as ordinary income. This rule limits the
deduction for ordinary income property to its basis.