charity Question

[Kram BergGold]

Taxpayer pays a mover $70 to move two large dressers from second floor of house to the garage. The Salvation Army then picked the dressers up from the garage (they won't pick things up from inside the house). I assume the $70 is deductible as part of the FMV of the dressers. Anyone disagree?

[FEDUKE404]

On first look

I would veto. How would that add to FMV, which is likely the limiting value of donation?

OTOH, after enough appropriate Christmas spirits, I might reconsider....

FE

[appelman]

How about as an out-of-pocket contribution...

providing a service to the Salvation Army?

[jimmcg]

providing a service to the Salvation Army?

Exaxtly, donate the money to the Salvation Army and let them pay the mover. They are the recipient of the benefit.

[Uncle Sam]

Charity Donation

This is interesting - it reminds me of an incident I had with a former client years ago.

He knew that he could get a charitable deduction for a donation of a vehicle.

One summer he and his wife drove their respective cars to their resort home - as he had to go back to
work during the week - she didn't.

So while they're there - her car konks out totally. He gets a tow truck to tow it to their place of donation
(in their main residence area about an hour away). The following tax season he gives me the donation receipt
for the car donation, in addition to the towing bill and expected me to take it as a deduction as well.

There are times when you shouldn't be a glutten pig.

[FEDUKE404]

Tugging on the IRS cape

Let me guess: He also donated each year a couple bags of used clothes worth $1,000 because he "only buys good clothes"??

I imagine the infamous Form 1098-C might now take some wind out of his sails...

(Wasn't quite sure if you were avoiding gluten or gluttony ??)

Nice IRS pamphlet, perhaps worth a bookmark:

http://www.irs.gov/pub/irs-pdf/p4303.pdf

FE

[DonPriebe]

The old piano is in the basement

... How would [moving costs] add to FMV, which is likely the limiting value of donation?

I would think that the FMV of a piece of furniture that's not readily accessible would be less than the FMV of that same furniture ready to be loaded into a truck. At best, the FMV might increase by the amount of the moving expenses. Deduct the FMV at the point and time of transfer.

[FEDUKE404]

Separate issue

OP stated the rules were established by Salvation Army. Other charitable organizations may not impose such restrictions. Would the fair market value of the item donated to them therefore be less??

In any case, the fair MARKET value (what it sells for at store run by Salvation Army/Goodwill) will likely show no adjustment for wherever the furniture "was" beforehand.

While it is a close call, I just cannot justify increasing the FMV of the donated item by the moving fees. Even moreso if the facts have to fit neatly onto a Form 8283.

My guess is that many tax folks would just bump up the value of the furniture, and carry on. For my 2¢ worth, with the advent of Circular 230 et al, I just tend not to stick my neck out as far as I perhaps once did.

FE

[Roberts]

Taxpayer pays a mover $70 to move two large dressers from second floor of house to the garage. The Salvation Army then picked the dressers up from the garage (they won't pick things up from inside the house). I assume the $70 is deductible as part of the FMV of the dressers. Anyone disagree?

I'd increase the value of the furniture by $70 and justify it as an improvement. Since the charity or a buyer wouldn't accept the item the way it was (on the second floor) at top dollar, they increased the market value by moving it to a more attractive location. Just as they would increase the FMV of an antique by moving it from Jackson Missouri to Manhattan NYC. It's all relative.

Hopefully their FMV was reflective of this move. By that, certainly they are deducting a reasonable value?

[ChEAr$]

Non concurrence

with increasing FMV as to physical location.

In a business of course relocation of a machine might add to basis, but here is not a business reason.

[Roberts]

with increasing FMV as to physical location.

In a business of course relocation of a machine might add to basis, but here is not a business reason.

That's just silly.

Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Location is a fact worthy of consideration in any valuation. Put those dressers in an apartment on the 12th floor where the only access is a staircase. Is location relevant when determining their value? It would be if I'm the buyer.

[FEDUKE404]

And the question was exactly WHAT?

That's just silly.

Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Location is a fact worthy of consideration in any valuation. Put those dressers in an apartment on the 12th floor where the only access is a staircase. Is location relevant when determining their value? It would be if I'm the buyer.

I think the more relevant issue here is the actual FMV of the donated property on the premises of the Goodwill type store, and not on the 12th floor of a building with no elevator.

Unless, perhaps, that IS the actual location of the Goodwill store.....

FE

[Roberts]

I think the more relevant issue here is the actual FMV of the donated property on the premises of the Goodwill type store, and not on the 12th floor of a building with no elevator.

Unless, perhaps, that IS the actual location of the Goodwill store.....

FE

The relevant issue is the FMV of the dressers on the second floor of his house. Which according to the firm he contracted with $0 as far as they are concerned. It has value to them on when he delivers it to the 1st floor.