Non-Cash Charatable Deductions..........

[pcmcpa]

Taxpayer passes away on 11/15/2009. On 12/10/09, his brother, the executor cleans out his home and donates $29,000 of clothes, furniture and household items to the Salvation Army. Are these noncash donations claimed on the deceased taxpayers schedule A of the 1040 for 2009 (i.e. his last Form 1040), or in Schedule A-1 of the estate's Form 1041? Thanks in advance for any response.

[Kea]

Was the brother also the heir per decedent's will?

The deduction would not go to the decedent. He did not donate it & it occurred after his death. His final 1040 stops at DOD.

If the estate made the donations prior to distributing assets to the heirs, then the deduction belongs to the estate. (And he may have to explain to the heirs why they aren't getting their full portion of the estate.)

If the brother was the only heir then he was the one donating his own property. His basis would be value on DOD & would take the deduction on his own 1040.

Hope that helps.

[Jack from Ohio]

Don't forget a third party appraisal will be required as well.

For a donation of non-cash this large, there should be an itemized list showing What, original purchase price, date of donation, FMV at time of donation, and the method of determining FMV.

[michaelmars]

i never get an appraisal on this sort of donation, only if one item is over $5000. this was probably 100 of separate donations of items under that amount. clothing/furniture and pots are not similar enough items to lump together for the $5000 threashold. imho

[jainen]

>>clothing/furniture and pots are not similar<<

In my opinion, the donation was of a single lot of household goods, which is not deductible without a written appraisal.

[Jack from Ohio]

i never get an appraisal on this sort of donation, only if one item is over $5000. this was probably 100 of separate donations of items under that amount. clothing/furniture and pots are not similar enough items to lump together for the $5000 threashold. imho

>>clothing/furniture and pots are not similar<<

In my opinion, the donation was of a single lot of household goods, which is not deductible without a written appraisal.

Curious if your position on this has survived audit inspection. I have to agree with Jainen on this one.

[michaelmars]

Clothing and household items not in good used condition. You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500.

Per 8283 instructions

[Jack from Ohio]

Clothing and household items not in good used condition. You must include with your return a qualified appraisal of any single item of clothing or any household item that is not in good used condition or better, that you donated after August 17, 2006, and for which you deduct more than $500.

Per 8283 instructions

Curious if your position on this has survived audit inspection. I have to agree with Jainen on this one.

Until I hear someone post that they have seen it survive audit scrutiny, I will continue to hold my position. form instructions hold no water when an audit is in action.

[jainen]

>> form instructions hold no water when an audit is in action. <<

Still, they are at least a little bit more useful than a story about somebody else's audit.

[Jack from Ohio]

>> form instructions hold no water when an audit is in action. <<

Still, they are at least a little bit more useful than a story about somebody else's audit.

The only difference between the two, at time of audit, are the size of the holes that let the water out.

[jainen]

>>The only difference... <<

Sorry, I disagree. The forms and pubs are not law and can be challenged in COURT. But they state the normal position of the IRS in plain language. The typical office examiner knows little else and will not wander far from the standard line. Citing any kind of ruling that hasn't been incorporated in the forms and pubs will almost certainly send her running to a supervisor. And if it is one of those inside-out citations, that something does NOT apply in a given circumstance, the supervisor will almost certainly give you a cold negative that dares you to appeal.