schedule a - donations

[babydollkmay]

I have a client that was left his parents entire household esate. Since all the contents of the house was left to him in the will they became his assets. If he made donations to the salvation army and has a itemized list and reciept along with the allowable deductions (guidelines for donated items amounts allowed) can he take them off on his taxes?

[smithtax]

Yes

I have a client that was left his parents entire household esate. Since all the contents of the house was left to him in the will they became his assets. If he made donations to the salvation army and has a itemized list and reciept along with the allowable deductions (guidelines for donated items amounts allowed) can he take them off on his taxes?

IRC § 1014(a) Basis of property acquired from a decedent

Except as otherwise provided in this section, the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed
from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent's death by such person, be -
(1) the fair market value of the property at the date of the decedent's death,


IRC § 1014(b) Property acquired from the decedent

For purposes of subsection (a), the following property shall be considered to have been acquired from or to have passed from the decedent:
(1) Property acquired by bequest, devise, or inheritance, or by the decedent's estate from the decedent;


Reg § 1.170A-1(c)(1) Value of a contribution in property

If a charitable contribution is made in property other than money, the amount of the contribution is the fair market value of the property at the time of the
contribution...

[taxea]

I have a client that was left his parents entire household esate. Since all the contents of the house was left to him in the will they became his assets. If he made donations to the salvation army and has a itemized list and reciept along with the allowable deductions (guidelines for donated items amounts allowed) can he take them off on his taxes?

I am curious...what is your level of tax experience?

[S T]

I am curious...what is your level of tax experience?

As a subscriber to the TaxBook with a paid subscription - I was not aware that any of us had to have a "level of Tax Experience" to post. Being helpful and assisting with what seems like simplestic questions - can further our own knowledge for correctness and refreshing our skills , as respondents ---- as well as other posters reading the posts, that might be seeking some of the same information or use as reference points later.

As a reader of the posts - it is our choice whether to respond with something meaningful and of assistance to the Original Poster or simply not respond , then read, take note and watch the "thread"

Sandy

[taxxcpa]

I agree. Questioning someone's level of experience is pointless. Everyone started, at one time, with NO experience, even those who now have 40 or 50 years experience.

Even the most experienced tax preparer may have some pretty basic questions in some areas. How many of us could prepare Mitt Romney's tax return and keep his tax down to about 15% legally?

[Matt Sova]

Really

"How many of us could prepare Mitt Romney's tax return and keep his tax down to about 15% legally?"

LTCG and Dividends. It's not that hard.

[taxxcpa]

"How many of us could prepare Mitt Romney's tax return and keep his tax down to about 15% legally?"

LTCG and Dividends. It's not that hard.

Do you actually believe it's that simple?

There were a lot more gimmicks than just LTCG and dividends that kept his taxes low.

Are you up to speed on the "carried interest exception?"

Romney has saved a lot of money over the years with the carried interest exception, a loophole that allows private equity managers—i.e., the people who run private equity funds, not the people who invest in them—to treat part of what they're paid in fees as investment income, even though they didn't necessarily invest the money. Often, this results in people like Romney paying a 15 percent tax rate on income that would otherwise be taxed at 35 percent. They pretend their labor income is really investment income by calling it 'carried interest' and paying at a low rate.

[ChEAr$]

Level of experience is irrelevant here

There are even some times this old brain goes on vacation and I can't even think where to look something up.

I think I may know the answer but it's nice to get confirming opinions here. Like my post just put up about dependency exemptions for daughter and grandchild.

It may just take another 39 years for me to finally get it right.

[VT-EA]

Welcome babydollkmay

Glasd to have you on board.

[LCP]

I am curious...what is your level of tax experience?

Got to admit that I was a bit curious myself when I read the phrase "take them off". The baby doll thing added to my curiousity.

Just curious.........

[taxea]

Got to admit that I was a bit curious myself when I read the phrase "take them off". The baby doll thing added to my curiousity.

Just curious.........

Like I said....just curious

you others choose to ignore, I choose to ask.....you own your car, you don't own the road

[Matt Sova]

Not at Bain

Do you actually believe it's that simple?

There were a lot more gimmicks than just LTCG and dividends that kept his taxes low.

Are you up to speed on the "carried interest exception?"

Romney has saved a lot of money over the years with the carried interest exception, a loophole that allows private equity managers—i.e., the people who run private equity funds, not the people who invest in them—to treat part of what they're paid in fees as investment income, even though they didn't necessarily invest the money. Often, this results in people like Romney paying a 15 percent tax rate on income that would otherwise be taxed at 35 percent. They pretend their labor income is really investment income by calling it 'carried interest' and paying at a low rate.

He was not at Bain Capital in 2011. So tell me, did he break any laws? No. If you are jealous of the fact that Romney made this kind of money and you did not, fine. But, do not insinuate that they pretended this and used that gimmick. Tax law is tax law and we ALL take any loopholes available for our clients.

[taxxcpa]

He was not at Bain Capital in 2011. So tell me, did he break any laws? No. If you are jealous of the fact that Romney made this kind of money and you did not, fine. But, do not insinuate that they pretended this and used that gimmick. Tax law is tax law and we ALL take any loopholes available for our clients.

I don't blame Romney for making more money than I do and I don't blame him from taking advantage of any gimmick or loophole. My point was not to criticize Romney, but to illustrate that there are little-known "gimmicks" or "loopholes" that most tax preparers are not prepared to deal with.

Your inference that all I was stating was jealousy is as insulting as it is uninformed.

[LCP]

Like I said....just curious

you others choose to ignore, I choose to ask.....you own your car, you don't own the road

Were you replying directly to me or to those other than me who were critical?

[JoshinNC]

I'm often curious about this

Like I said....just curious

you others choose to ignore, I choose to ask.....you own your car, you don't own the road

And have been lambasted on this board before for "going there". The professional tax preparer should have the same basic knowledge necessary to complete their job requirements as an attorney, architect or medical professional. This question, and the way in which it was asked, are so rudimentary to accurately preparing taxes that it is a good question.

I suggest we, the true tax PROFESSIONALS, begin weeding out the untrained and less knowledgeable preparers, call them out on it and force them out of business, if for no other reason than to protect our profession.