Discussion:Cash or noncash contribution
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Discussion Forum Index --> Basic Tax Questions --> Cash or noncash contribution
Discussion Forum Index --> Tax Questions --> Cash or noncash contribution
| 7 March 2008 | |
| Client spent ~$200 at Target store (has receipt) on toys to donate to Toys For Tots on the same day while they were there. Would this be in cash or noncash contribution category? Cash: that was the amount they agreed to donate; Noncash: toys were picked out and given. ??? | |
| 7 March 2008 | |
| Noncash
What they gave the charity was toys, not cash. Taxpayer needs to keep the receipt as documentation of their cost basis. Taxpayer needs a written receipt from Toys for Tots as documentation of goods donated. | |
| March 7, 2008 | |
| I have no authority for this, but I'd use cash. To me, it's the same thing. Otherwise, you end up in an argument about how the fmv of the toys could be what you paid...looks wonky. | |
TheTinCook (talk|edits) said: | 7 March 2008 |
| Not sure how wonky it would be. It sounds really easy to defend to me.
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| 7 March 2008 | |
| Thanks all. Seems like it should be a simple issue. I first thought of putting in noncash, but cash seems to make sense too. Didn't want to have more than $250 in noncash. Client has at least 10 receipt cards from AmVet during 2007 claiming $100 each for household & clothing items. How much would you all use?? | |
| 7 March 2008 | |
| I vote noncash. How is this different from any other item that is purchased and donated? Target received the cash and isn't a nonprofit. | |
| 7 March 2008 | |
| That's weird... I was just typing the last response then I noticed BethAZ's reponse as I clicked save reply. | |
| 7 March 2008 | |
| That's OK. I'm frazzled these days and the electromagnetic static emanating from my wired out brain is causing funky computer malfunctions throughout the entire Southwest. | |
| 7 March 2008 | |
| That's what it is!:-)
Any thoughts on my previous comment?...on 10 receipt cards from AmVet claiming $100 each.. | |
Death&Taxes (talk|edits) said: | 7 March 2008 |
| I had the same thing and gave them little shrift; I believe if you keep a list you can deduct up to $250 if a receipt is not available (think Goodwill box in parking lot), but here someone picked the stuff up from the door and left the receipt. Seems to me 10 @100 is pretty rich. He could have slipped the driver some cash to get blank ones. In my case, at least this guy had receipts from six different organizations.
I agree with TC and Beth on the other matter. He did not spend the cash for the benefit of the organization directly, but converted it to toys. Hate to be cynical, but unless the dropoff was in the Target store, how do you know these were the same toys? | |
