The IRS Deductions Blog

Posts Tagged ‘donation’

Items on Amazon Right Now for Car Donation Tax Deduction Rules:

Tax Tip: Deduct Your Car Donation

NEW YORK (MainStreet) — If you donate a used car to charity, the rules for claiming a deduction are different from the normal rules for donating property. What you can deduct depends on what the charity does with the car. If the charity sells the car at auction, your tax deduction is the price the car sold for at the auction. If you donate a used car to charity, what you can deduct depends on …

Kidney car donation-Scams to look out for

Question: How much charitable contribution can I take?

I’m the sole shareholder of a corporation which operates a travel agency for business travelers. I want to donate computer equipment to a qualified charitable organization. I bought the equipment 2 years ago for $90,000 and expensed the entire amount under section 179. The market value of the computers is $40,000. If my corporation’s taxable income is sufficient for it to deduct up to $50,000 in charitable corporations, how much tax deduction would I received for this donation? I know that IRS publication 544 gives the method for depreciation recapture for section 1245 assets, but the wording is kind of confusing. Can anyone help??? Thanks!!

Answer: First, you will receive no deduction for the donation of the equipment. The charitable deduction is the lesser of the donor’s basis or the fair market value. In your case, the basis is zero because you have expensed its entire cost.

If you do remove the equipment from service, you will have to include in income the tax benefit you derived from taking Section 179. This is the difference of the Section 179 deduction and the MACRS depreciation for the period the item was in service.

Under MACRS you would have depreciated your item 20% in Y1 and 32% in Y2, with 48% remaining at the time of conversion. Therefore you must include in income 48% of the Section 179 deduction, or $43,200.

Items on Amazon Right Now for Donation In Kind Tax Deduction:

iPad 2 Launch Creates “Donate to Educate” Opportunity for Tech Hungry Students and Teachers

Georgia based nonprofit organization launches new “Donate to Educate” program targeting the 15 million 1st generation iPads to be used in the classroom. According to 19 year old visionary Travis Allen, Founder and President of the iSchool Initiative, the successful debut of the iPad 2 has planted the seeds to transform our struggling public education system in the post PC world.

Helping Needy Kids – Christmas Joy 2009.wmv

Items on Amazon Right Now for Tax Deduction Clothing Donation Calculator:

Items on Amazon Right Now for Goodwill Tax Deduction Guide:

2010 Holiday Guide

Goodwill hunting Hipsters may be on to something. In the search for unique gift ideas at a low cost, it should be no secret that secondhand retail stores are a gold mine for the retro junkie in all of us. …

Items on Amazon Right Now for Irs Tax Deduction Car Donation:

6 tax breaks that anyone can claim

Don’t let the complexity of tax filing scare you away from tax credits that are legally yours to claim. Here’s a quick list of both credits and deductions that can be applied to your tax return.

Car donation CT Connecticut=Huge IRS warning!