Yes, each of you can deduct your half of the donation. Each of you should retain a copy of the transfer, receipt from the VFW and your actual cost of the property.
Here are some rules that pertain to the donation of capital assets.
Amount of deduction—General rule. When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property.
Exceptions. However, in certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Generally, this means reducing the fair market value to the property's cost or other basis. You must do this if:
The property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations,
You choose the 50% limit instead of the special 30% limit for capital gain property, discussed later,
The contributed property is intellectual property (as defined earlier under Patents and Other Intellectual Property ),
The contributed property is certain taxidermy property as explained earlier, or
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The contributed property is tangible personal property (defined earlier) that:
Is put to an unrelated use (defined later) by the charity, or
Has a claimed value of more than $5,000 and is sold, traded, or otherwise disposed of by the qualified organization during the year in which you made the contribution, and the qualified organization hasn't made the required certification of exempt use (such as on Form 8282, Donee Information Return, Part IV).
- For more information about donations of property the link is here should you choose to review. Publication 526 - Charitable
Contributions
To record your noncash donation use the steps shown below.
TurboTax desktop follow the steps here.
1. Sign into your account and select your current return.
2. In the search box, upper right,
3. Search for noncash charitable contributions
4. Jump to noncash charitable contributions
5. Follow the interview to enter your contributions.
