BulldogTom Posted February 22, 2011 Report Share Posted February 22, 2011 Client has lots of trucks in their business (C Corp). They drive them until they die and then donate to a local charity. They had 5 vehicles die this year. Fully depreciated. They did not include a donation on the books, just showed as sold for $0 and cleared from fixed assets and accumulated depreciation. The charity sent them 1098C for each of the vehicles with amounts from $1000 to $1500 on each vehicle. I know an individual would be able to take the FMV as a deduction (limited to the amount the charity sold the vehicles for), but I am fuzzy on if a corp can take the same deduction. Thanks in Advance. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
jainen Posted February 22, 2011 Report Share Posted February 22, 2011 >> an individual would be able to take the FMV << For an individual or a corporation the deduction for ordinary income property is limited to the lower of FMV or adjusted basis. Typically, the code says it kind of backwards--The deduction is FMV reduced by the amount that would be treated as ordinary income if the vehicles were sold. Even with capital gains, if tangible personal property like a vehicle, the deduction is FMV reduced by the gain. Generally, only with qualified appreciated stock can you deduct FMV exceeding basis. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 23, 2011 Author Report Share Posted February 23, 2011 Thanks Jainen. I think I have been listening to too many of the auto donation commercials on the radio. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
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