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How can I plot more than one value in the same date?

What if the "value" of your charity deduction is wrong? (charity auction tax deduction question)?

  • Hi! Thanks for all the help on Yahoo Answers! I saw someone recommended me to IRS Publication 526, that article explains a lot. However I still have a question one of my charity auctions I won. It was for a CD/DVD signed combo pack and a T-shirt of said music musician. The said "value" that they wrote on the paper was $85. I bid $200 so according to IRS it should be the total donation minus the fair market value and that total put be as a charity deduction However, the real value isn't $85. I will explain. At a later date I went to the music artist's concert--they were selling the same signed CD/DVD combo pack for $15 and the same t-shirt for $40. I don't mind that I paid more than the real value, BUT, I have a problem that they valued it at $85 when really someone could get the items for cheaper ($55). So here is my question: For the fair market value I should claim $200 minus $55 which is $145, right? Since it really didn't cost $85 for the items. Thanks for the information.

  • Answer:

    Items sell at different prices at different times and places. The auction charity showed a value of $85, so that's what you use. Your deduction is $115, and then only if you itemize.

Scott at Yahoo! Answers Visit the source

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You are stuck with the value on the letter from the charity. They said $85, so you can't use $55.

Quick Answers

ordinarily these charitable organizations submit a statement of the item you won and the market value of that item to allow you to determine what you can claim as a deduction if the organization is on record for the amount they claim is the market value, they are the ones who purchased the items, the know how much they paid for them

tro

Wrong. 1. CD/DVD prices change. Just because it was worth only $55 on a later date does not mean that it was worth only $55 on the date you got it. It might have been worth $85 then. Only the value when you got it matters, not the value on the later date. 2. You cannot buy it at the concert without buying concert tickets. The concert tickets cost at least $30, so you are not correct to say that you could spend only $55 and get it. 3. The price at a store might be different than the price at a concert. Value is usually determined by normal retail price in a store, not by the special prices at concerts.

StephenWeinstein

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