"Rich White" <richwhite316[at]sbcglobal.net> wrote:

- quote -

No, you only get your out-of-pocket costs.

A computer program is NOT a tangible item. You may deliver
it on a diskette but the program is the list of
instructions, etc. and those are intangible.

Lanny Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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Rich White wrote:

- quote -

Don't matter.

Your deduction is any out of pocket expenses, and not some
"marked up" value.

cheer$,
Harlan Lunsford, EA n LA

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richwhite316[at]sbcglobal.net (Rich White) writes:

- quote -

Nice try, but no. Only your out-of-pocket expenses are
deductible.

Phil Marti
Topeka, KS

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Rich White <richwhite316[at]sbcglobal.net> wrote:

- quote -

No, you can deduct your cost basis in it (cost of writing
it), which is approximately $0.

Seth

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richwhite316[at]sbcglobal.net (Rich White) wrote:

- quote -

Since this is a custom application only for their use, I
suspect this would be treated as providing the service of
contract programming, not donating the application. If the
software were already written and you gave them a free
license then *maybe* it would work.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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richwhite316[at]sbcglobal.net (Rich White) wrote:

- quote -

No. Your deduction is limited to your actual cost. This
would be the case even if you were in the business of
writing and selling this software.

Had you purchased the software from somebody else, and paid
FMV for it, your actual cost would be the FMV of the
software, and that would be your deduction. But you aren't
purchasing it from somebody else.

--
Chris Green

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richwhite316[at]sbcglobal.net (Rich White) wrote:

- quote -

Useful or not, ONLY your out-of-pocket costs are a charitable
donation. The same applies to artist who donate a painting or
photograph they have created - only the cost of materials.

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"Rich White" <richwhite316[at]sbcglobal.net> wrote

- quote -

Nope.

- quote -

Then why'd you ask?

- quote -

What is your actual out-of-pocket cost of that tangible good
(my guess it's a floppy disk or CD)? That is your cost
basis for any charitable donation.

--
Snowmen fall from heaven unassembled.
-------------
Paul A. Thomas, CPA
taxman at negia.net

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- quote -

Only if you claim the ENTIRE bill as income to you. And
trust me, you will pay more taxes than you will get as a
refund.

Helen, EA in PA
Member of The Tax Gang
Immediate Past President, PA Society of Enrolled Agents

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I am in the process of writing a custom software application
that I will give to my church to use. Can I deduct the fair
market value of this software application as a charitable
contribution? I understand that I can't take a deduction for
donating my time or personal service, but in this instance
I'm giving them a tangible good that they would otherwise
have to purchase.

Rich

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