Charitable Contributions - Brand New Clothing Donated

[Yardley CPA]

How do you document charitable contributions of brand new clothing.  Client provides pictures along with the receipts for brand new clothing she purchased and donated.  I assume it is non-cash contributions documented as follow on form 8283 :

Fair Market Value = Purchase Price

Method Used to Determine FMV = Replacement Cost New

Donors Cost or Adjusted Basis = Purchase Price

Amount Claimed As Deduction = Purchase Price

Is this correct?

 

[Ringers]

That is the exact method I have used over the years when new articles are purchased and donated to a 501c-3 (such as a Church) for distribution to the homeless, poor, etc.

It has withstood 2 audits, so our thinking on the matter must be correct.

 

[Terry D EA]

Sounds right to me. FMV of new items is the purchase price. Just be sure the client keeps a list and the receipt from the charity. It would be helpful if the charity would put the price on the receipt. Better to over kill the documentation if the IRS requests it.