Donating Cancelled Wedding Venue, etc. to Charity?

[mactaxes]

We received the following question from a client yesterday:

"We have donated a venue reception(food and drinks), photographer, DJ, etc. to a charitable organization. These items were originally for our daughter’s wedding, which has been cancelled. Can you tell us what is needed to be able to use these items as a tax deduction?"

Obviously, they will need a letter from the charity...but we have been unable to find any guidance on whether or not this would actually be allowed as a non-cash donation AND if so, what value to use.

Some in our office assert that the value of it all is currently $0 or "worthless" in the hands of the donor. Others say that the donated value should be FMV or what the parents originally paid.

Thoughts?

[Lion]

I think it's their cost or FMV, which ever is lower. If a specific date or time frame limits the use of their donation, FMV might be lower. Keep all vendor receipts, canceled checks, charge statements, etc., as well as the letter from the charity. I haven't had to research this, so please research this before filing. NATP will answer questions plus provide cites.

[Burke]

If they paid for these items (or will pay for them when used), then I do not have a problem with the charitable deduction -- (assuming the charity can and will use them). This means the charity cannot assign these to a specific person, but utilize the venue, etc for their general use and purpose.

[taxea]

If they paid for these items (or will pay for them when used), then I do not have a problem with the charitable deduction -- (assuming the charity can and will use them). This means the charity cannot assign these to a specific person, but utilize the venue, etc for their general use and purpose.

My understanding is the donor cannot assign the donation to a specific person. The charity can as long as it is not specified by the donor as to whom the donation will go to.

[ATSMAN]

You must fill out Form 8283
If you claim a deduction for a contribution of non cash property worth more than $5,000, you'll need a qualified appraisal of the non cash property.

Charge for the extra time you will spend on this return!

[taxea]

You must fill out Form 8283
If you claim a deduction for a contribution of non cash property worth more than $5,000, you'll need a qualified appraisal of the non cash property.

Charge for the extra time you will spend on this return!

I agree that a qualified appraisal is required for anything over $5000. Having said that....in this situation the reception hall, catering, photographer may have been separate, in which case, each individual value may not be excess of $5000.

[ATSMAN]

Good point. Each individual item may be less than $5000. The hall rental and catering if billed together may exceed the threshold.