Yardley CPA Posted February 5, 2018 Report Share Posted February 5, 2018 How do you document charitable contributions of brand new clothing. Client provides pictures along with the receipts for brand new clothing she purchased and donated. I assume it is non-cash contributions documented as follow on form 8283 : Fair Market Value = Purchase Price Method Used to Determine FMV = Replacement Cost New Donors Cost or Adjusted Basis = Purchase Price Amount Claimed As Deduction = Purchase Price Is this correct? Quote Link to comment Share on other sites More sharing options...
Ringers Posted February 6, 2018 Report Share Posted February 6, 2018 That is the exact method I have used over the years when new articles are purchased and donated to a 501c-3 (such as a Church) for distribution to the homeless, poor, etc. It has withstood 2 audits, so our thinking on the matter must be correct. 4 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 6, 2018 Report Share Posted February 6, 2018 Sounds right to me. FMV of new items is the purchase price. Just be sure the client keeps a list and the receipt from the charity. It would be helpful if the charity would put the price on the receipt. Better to over kill the documentation if the IRS requests it. 3 Quote Link to comment Share on other sites More sharing options...
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