Charitable Deductions 8283

[S T]

I have an interesting situation that I have not encountered before

Taxpayer has a list of Charitable Contributions - non cash for form 8283

Wife passed away Jan 2015 from ALS - donated items with list and no fmv value from ALS -

In discussing with taxpayer a lot of the items taxpayer donated to ALS to assist other ALS recipients. The original cost on some of these items were paid for via Medi-Cal (Calif) - a medical deduction on the Taxpayer's return in year 2013 and 2014 - there is no medical deduction

It seems the Taxpayer has no cost or adjusted basis if Medi-Cal covered and thereby there would be no deduction for a form 8283 Charitable Deduction.

Taxpayer would only be able to deduct Charitable Donations for items that he would have paid out of pocket and NOT covered by Medi-Cal

Would this be true?

Sandy

[mactoolsix]

It seems the Taxpayer has no cost or adjusted basis if Medi-Cal covered and thereby there would be no deduction for a form 8283 Charitable Deduction.

Taxpayer would only be able to deduct Charitable Donations for items that he would have paid out of pocket and NOT covered by Medi-Cal

Would this be true?

Sandy

I totally agree.

If he didn't pay for them what could you put on the line for Donor's Cost? Gift (from Medi-Cal)?

Edited: OK, now after reading the Pub 526, I'm rethinking this.
Nothing says you had to pay for the item.
He could sell the item, nothing stopping him.
So, why not donate it. He is donating the value of something he could have sold.

Donor's cost = Gift
Mike

[S T]

Thanks
Confusing for sure, so if a FMV can be established and could be sold we would use that for form 8283 for a charitable deduction as cost and deduction would be FMV at date of gift? Of course reasonable amounts, not inflated as some taxpayers would like to believe.

Power Wheel Chair - not sure of the actual cost, we will just say $ 1,000 - Medi -Cal paid - Taxpayer at time of donation after wife passes away donates to ALS - Taxpayer might have been able to advertise and sell say for $400 - So I could use $ 400 as cost and $400 for donation value?

Sandy

[taxea]

he has the FMV of any item at the time it was "given to him".

[Lion]

If they were his wife's personal items and she died and your client inherited the items, doesn't he get a step-up or step-down to the DOD values?

[Burke]

Thanks
Confusing for sure, so if a FMV can be established and could be sold we would use that for form 8283 for a charitable deduction as cost and deduction would be FMV at date of gift? Of course reasonable amounts, not inflated as some taxpayers would like to believe.

Power Wheel Chair - not sure of the actual cost, we will just say $ 1,000 - Medi -Cal paid - Taxpayer at time of donation after wife passes away donates to ALS - Taxpayer might have been able to advertise and sell say for $400 - So I could use $ 400 as cost and $400 for donation value?Sandy

Am assuming from your post that the ALS foundation is not going to sell these items for cash, but allow existing ALS patients to use them? Then FMV at her date of death.

[S T]

Burke, I believe that to be correct. ALS would not assign a value to them either.

Sandy