Cynthiad66
Expert Alumni

Deductions & credits

Basically, tax law requires reporting it differently.  Different methods are used for determining the actual donation as opposed to the gain or loss.  Stock sales required more information and detail for capturing on Form 8949 and Capital gains and losses.

 

To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. If your total deduction for all non-cash contributions for the year is more than $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return.

 

Use Form 8949 to report sales and exchanges of capital assets. Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.

 

For the purchase price of inherited property, you will use the fair market value on the date of death, and fair market value is method to determine value.  This will allow you to deduct the amount that the items were worth when you donated them.

 

@jlr00721

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"