Charity how to handle

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  • Kram BergGold
    Senior Member
    • Jun 2006
    • 2112

    #1

    Charity how to handle

    Client bought $550 worth of items and immediatley gave them to a 501 (c) (3). I have always deducted this kind of gift as cash, not property. The acknowledgement letter he got, does not have a dollar value. I looked it up and the aknowledgement for a property gift does not require an amount but a cash gift does. I probably will put this gfit on Form 8283. Any contrary thoughts? Should all gifts of items bought for the purpose of a donation be treated as property or have I been doing it correctly as cash?
  • TAXNJ
    Senior Member
    • Jan 2007
    • 2106

    #2
    Some suggestions

    As you know form 8283 is for all non cash gifts over $500.
    Last edited by Brad Imsdahl; 09-16-2015, 12:44 PM.
    Always cite your source for support to defend your opinion

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    • FEDUKE404
      Senior Member
      • May 2007
      • 3646

      #3
      Donated property is cash gift ? ?

      Originally posted by Kram BergGold
      Client bought $550 worth of items and immediatley gave them to a 501 (c) (3). I have always deducted this kind of gift as cash, not property. . .
      I would personally have a difficult time supporting this position. . .

      FE

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      • TAXNJ
        Senior Member
        • Jan 2007
        • 2106

        #4
        In addition

        See Schedule A line 17
        Always cite your source for support to defend your opinion

        Comment

        • Kram BergGold
          Senior Member
          • Jun 2006
          • 2112

          #5
          Thanks

          There seems to be agreement to deduct as property. That is cool. Either someone convinced me that when you buy something to donate you treat as cash or I made this up. Thanks

          Comment

          • taxea
            Senior Member
            • Nov 2005
            • 4292

            #6
            I show it as new on the 8283 and take the total cost.
            Believe nothing you have not personally researched and verified.

            Comment

            • TAX4US
              Senior Member
              • Mar 2010
              • 551

              #7
              I agree with the property idea since it is property you are giving and not the actual cash for them to spend as they see fit. I think a long time ago there was an either or until the rules got tighten up. Just My thought.

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