Cost basis is the amount for which an asset is purchased.
If the property converted was something you purchased, the amount will be what you paid for it. If the item was inherited, the cost basis is the fair market value of the item on the date the person who you inherited from died.
For non-cash contributions, the deduction is based on fair market value. If the donated items are worth less than 500 dollars, you can use fair market value guides (Goodwill and the Salvation Army provides value guides for a list of low value items). For items that have a value greater than 500 dollars, the IRS recommends taxpayers obtain an appraisal. If there are items with a value more than 5,000 dollars, the IRS requires an appraisal.
