If you play the rebate and coupon game, you occasionally buy FAR stuff that you don’t need or want. And there’s not much incentive to go on ebay with a 56k modem or universal remote.
I’m thinking about taking this stuff to Goodwill, taking a photo of the donation process, and write the total off my income tax. No head scratching about fair market value: I’ve got copies of the very recent receipts in my rebate records.
I hate to be the one to point out the fly in the ointment, but the cost that you can *legally* claim is the lower of your cost or market. ie- if you pay $2 for a $50 item and donate it, you can claim $2. If you pay $50 and at the time you donate it, it's worth $2, you can claim $2.
__________________
About 5% of the people in the world can't think.
Another 5% can think and do.
The remaining 90% can think, but don't.
Figuring the value of other personal property can be more complicated. For example, determining the value of a donated used car requires weighing several factors. Some car donation program operators have mistakenly suggested that donors can take as a deduction the full value listed in an established used car pricing guide.
The tax law, however, allows a deduction for only the fair market value of the car. Fair market value takes into account not only the year, the model and the mileage of the car, but also the local market and the vehicle’s condition. As a result, the fair market value of the taxpayer’s car may be substantially different than the average price listed in an established used car guide.
The IRS also reminds taxpayers to keep appropriate records to substantiate the value of their gifts. For example, for any single gift of $250 or more, a taxpayer must have a written acknowledgement from the charity by the earlier of the date the person files the tax return or the filing deadline, including extensions. A person donating property valued at more than $5,000 must obtain a qualified written appraisal.
Looks like one should be able to safely write off the average Pricewatch first page price.
Fair market value of a new item is the same as the retail price. The fact that you got it for free has nothing to do with it. If the charity you gave it to wanted buy one of these items, they would not be able to get it for free. They would have to go to the store and pay the retail price.
Looks like one should be able to safely write off the average Pricewatch first page price.
Linear Mode
