New non-cash donations

[ShawnE]

Hey Gang,

Client purchased a bunch of toys for Christmas and donated them - new. Total=2775.00

Do I have to fill out the 8283? Or is this considered cash? The nonprofit went with them on the shopping spree.

He also donated used clothing but not more than the 500.00

brain dead in Las Vegas

Shawn

[MargaretMort]

I have clients who donate new furniture and miscellaneous items to a couple of non profits in this area. I always fill out the 8283 with the date and amount of each group of purchases but don't itemize each individual item. They also have a form from the non-profit attesting to the donations. Perhaps the toys could be separated into reasonable small, like items so as to not put all misc. and the amount lumped together? MM

[TAXBILLY]

I put them on the 8283.

taxbilly

[lbbwest]

I put them on the 8283.

taxbilly

Agree, also have client keep copies of receipt or receipts with copy of 8283.

[ShawnE]

Thanks for the reply's,

Not that doing a 8283 is all that difficult but...

Volunteer expenses are captured as cash contributions. In this case, the client took the agency/kids shopping for Christmas. So one could say these are volunteer expenses. I'm worried that because I wouldn't do a FMV adjustment - as these are new toys - that it would be red flagged. The purchase price is the value.

Shawn

[MargaretMort]

You are absolutely correct that the purchase price was the value. I just put purchase in how acquired, the donor's cost, FMV is the same as the donor's cost and cost is the method used to determine the FMV. You don't have to fill in columns (d), (e), or (f) if the cost is less than $500.