Have a Tax Question? Ask a Tax Expert
In order to take charitible donation deductions you need communication from the non-profit acknowledging the donation and value. Normally this is a receipt.
But depending on the type of donation and amount, you may need appraisals.
It is a wheelchair access ramp that was installed for my husband who has since passed away. It was installed and paid for by the VA/medicare. I didn't have to pay anything for it, but do not need it anymore and wanted to know if I could claim it as a tax deduction if I donated to a charitable organization. I was told it's cost, if I purchased it woud be in the area of $10,000.00.
would I need to show proof of purchase if I claim this as a tax deduction?
You can still donate this and take a deduction for it as long as you and the charitable organization can agree to its value.
You were gifted this and there for ownership was transfered to you. Its cost basis for depreciation purposes is the same as the cost basis for the gifting person/organization.
There for its cost basis is actual cost to the organization who donated it to you. If they built it from scratch, as often they do, then the FMV at the time of the completion is the cost basis.
You can donate it at its depreciated value, or FMV now. (FMV for a used ramp).
if it is valued at more than 5,000 you have to get it appraised.
form for donations totaling 5,000 or less: http://www.irs.gov/pub/irs-pdf/f8283.pdf
Complete section B if the donation is more than 5,000
The section B part of the form has a place for the signature of the non-profit and the appraiser.