Nan Eklund wrote:

- quote -

Must be big bags to come to over $83 per bag.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Nan Eklund wrote:

- quote -

That doesn't agree with the instructions -- if a single item
or group of items exceeds $500, cost information must be
given (except for the other exceptions noted by MAT1040X --
if the ALL the clothing was held over one year, than
"various over one year" would be acceptable for the date the
property eas acquired, and the cost/basis field would be
left blank.)

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genfinsvcs[at]aol.com (GenFinSvcs) wrote:

- quote -

I agree with you, Mike. The need for the form is based on
the TOTAL of all non-cash contributions being over $500.

Herb

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- quote -

Apples & oranges.

Of course Form 8283 is required if the total noncash value
is over $500.

But if each batch of items donated is less than $500, you do
not have to furnish the original cost figure in the Form
8283 column.

That means you can leave a few of the columns on the 8283
blank for each contribution or batch that is under $500.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

The instructions for 8283, column f (Donor's cost or
adjusted basis) state "Do not complete this column for
publicly traded securities or property held 12 months or
more."

So, if the property was owned more than 12 months there is
no need to fill in the cost.

If the total of ALL of the non-cash contributions totals
over $500 then an 8283 must be attached.

Mary Ann Thomas, EA in AZ

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GenFinSvcs wrote:

- quote -

OK, you have to attach the 8283. You do not have to
furnish original cost information (Section A, Part 1,
columns (d), (e), and (f).)

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For years I've been doing the 8293 - with no problems - as
follows: Goodwill; pick-up truck (for address); clothes,
VCR, toys (whatever I can fit into the description line);
date given, various, purchase, LEAVE ORIGINAL COST BLANK,
$350 for FMV when given and "Salvation Army list on
internet" for establishing value. Next line is Salvation
Army or whatever and similar data with $410 as value. Each
collection is a bunch of things, every one under $500, and
the total well over $500.

It works. IRS knows the pattern of giving bags of stuff and that 6 bags of
clothing may total over $500 but no single item was. Form 8283 has to be used
but it doesn't have to be so picky.

Nan, EA in Los Angeles

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- quote -

That is correct. But on the 8283 you wouldn't have to fill
in the how acquired, purchase date and cost columns.

--
Don EA in Upstate NY

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- quote -

I'm not sure I agree Art. Schedule A says that a Form 8283
MUST be attached if the total noncash contributions exceed
$500. Form 8283 says if you claim a total noncash contribution
of over $500 for all contributed property you need to attach
Form 8283.

Going by that, one would think that if you gave several
noncash contributions, each less that $500, with a combined
total of over $500, you would be required to attach Form 8283.
Am I looking at this wrong?

Mike

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"BRaskinCPA" wrote:

- quote -

The only way to know something is acceptable to IRS is where
your clients are selected for examination and the manner of
filling out 8283 on a number of clients wasn't questioned.
What it appears you're showing is fair market value equal to
cost, which would be a reason to select it if it involves
the usual personal property. However, only a small % of
returns are even screened, and small 8283's w/o other issues
on the return, may not be selected no matter what they say.
I managed that program for a number of years, and returns
selection is both art and science, under the twin thumbs of
reality and probability.

Fred F.

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"r" <splattone[at]hotmail.com> wrote:

- quote -

What you paid for the items is generally not important or
affects your deduction in any way. Tell me, would YOU pay
$500+ for this collection of junk at a yard sale? The value
of used goods depends heavily on *condition*, and a book or
computer program is NOT going to help you there.

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"r" <splattone[at]hotmail.com> wrote:

- quote -

How were they acquired? = Purchased. You did (in most
cases) didn't you?

Date Acquired = Various. You can aggregate the pile of
clothes or household goods as "clothes" or "household
goods". And you DID get them at various times.

Cost = the amount you paid for all the items, all added up.
Likely, the purchase price of each item is larger than the
current fair market value. If so, this is not a particularly
critical number, since you get the lesser figure, anyway.
Make your best estimate of the purchase prices. You
probably know ABOUT what you spent on them. Basis of the
gift items is what the giver paid for them.

By the way, putting $499. does not relieve you of the
necessity having a list of the items and reporting the
lesser of basis or FMV of the items. It only relieves you
of including the information with your return. They can ask
you for the information later. Might as well submit it with
the return.

One more thought. Its Deductible is a nice toy. I have
used it to emphasize to clients how important it is to keep
track of the items they give away, and how much they might
be able to deduct. HOWEVER, do not take the figures as the
final word on the subject. Make darn sure that the values
given accurately reflect the condition of the item you gave
away. If it says the men's suit you gave away in "fair"
condition was worth $50.00, they are not talking about the
one you gave away with the pocket flap ripped off. It's the
same argument as the auto values vs. the blue book value.

That said, don't leave deductions on the table at tax time!

Bryan
-------- Bryan Kellar, EA
Oregon Tax Help, Inc. Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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r wrote:

- quote -

I don't like to use the 499$ amount; something along about
482, or 479 is more like it. Seriously.

chEAr$,
Harlan Lunsford, EA n LA

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- quote -

Here is what I do for my clients.
I put Various into the Acquisition date. Use the date of the
contribution. And use the same amount for basis and
contribution amount. I keep a copy of the detailed listing
in my file.

Have never been questioned on doing this for over 20 years
in practice.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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r <splattone[at]hotmail.com> wrote:

- quote -

You say you made "several" donations.

If each batch, each separate donation was under %500, you do
not have to furnish original cost figures.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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I have made several large donations of old clothes, toys,
household goods, etc.

When using It's Deductible and adding up the totals I am
well over $500.

What can I do or put on my return when I have no way of
knowing the original cost of these items?

Individually, they would number over 100. Some were gifts,
some purchased.

Turbotax gives me "various" as an option for "Date Acquired"
but what can I say about hundreds of small items in regard
to the Original Cost or Adjusted Basis?

I could probably get away with putting Purchased or Gift in
the "How did you acquire?" box.

I know many will tell me to just put $499 and forget about
it but I hate to lose out on a potential deduction.

Thanks.

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