Share:
Add to Favorites   |  

Hot Consumerist Forums Threads

365 views

  • Are items purchased at a charity auctions considered tax deductible? Find out how to properly make these deductions.
  • Win a $50 or $25 gift card in The Consumerist Forums "Steals and Deals" contest. Find out how to enter.
  • Reader purchases "lifetime" license for Mundu IM software but finds out that nothing lasts forever.
  • Black Friday, how was yours? Readers share their war stories about that fateful day.
  • Post a comment

    Comments:

    3
    user-pic

    The charity answer doesn't answer the question asked.

    user-pic

    IANATaxLawyer (for 2nd time today), but the charity question needs some clarification-- items purchased at a charity auction are not tax deductible, since you are receiving something having value in return.

    Items given to a charity auction are usually fully deductible, but not items bought from a charity, by any mechanism (auction, store, etc).

    Otherwise you could go to Goodwill, buy up the whole store, and deduct your purchases on your return? Not.

    Pub 526 [www.irs.gov]

    user-pic

    The amount you pay for an item at a charity auction that exceeds the fair market value of the item is a tax deduction.

    For example - if you buy a $4000 car at a charity auction for $5000, you can list that as a $1000 donation.