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.
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.
What do i put for non cash contributions worksheet
Thanks for the reply. I would like to clarify something for those of use who are still having problems:
Say that according to the TurboTax ItsDeductable option my non-cash contributions to a charity totaled $5000 (i.e., Schedule A, Part 1, Line 2, Value of contribution = $5000)
Schedule A, Part IV, Line 10 then asks "Cost or adjusted basis in the donated property."
Do we enter $5000 in this space if ItsDeductable says the value is $5000?
Please advise.
Your "cost or adjusted basis" in an item is either (a) what you paid for it, less any depreciation you have deducted for that item; or (b) if you inherited the item, it is the fair market value on the date you inherited it, less any depreciation you have deducted for that item.
I read the replies but the question was not answered. The total amount is over $5000 but no items are over $500. What would i enter in in the cost/adjustment box?
The cost or adjusted basis of donated items is the amount you paid for them, less any depreciation, or if you didn't buy the items, their Fair Market Value at the time your received them, also less any depreciation.
People usually estimate this number since they rarely keep accurate records of these purchases.
Your deduction for the donation is the lesser of your cost/ adjusted basis or the Fair Market Value at the time they were donated.
In most donations, the current value of the items is less than the cost or adjusted basis, so the current FMV is the amount of the donation.
If this still doesn't answer your question, you need to be more specific about what you are asking.
How about if I made a mistake in entering the cost/adjusted basis amount. How do I go back to modify it?
If you are referring to Items Donated to Charity, go back to that section under Deductions & Credits.
If you donated a particular item, EDIT the item and change amount in the 'Value' field.
If you are referring to Cost Basis in another section, please clarify and we'll try to help.
@Caridad17
I am referring to the Cost/Adjusted Basis field in the Federal Taxes>Review tab> Let’s fix errors screen. Turbotax prompted me to enter the cost/adjusted basis here. I wanted to modify the amount I entered.
What is the full error message? If you want to change the amount shown, you can do so in the Review.
There is Cost Basis for many things; including stock sold, rental property, business vehicles, etc. We can't see your return in this forum, so don't know which Cost Basis you are referring to.
Since you tagged onto the end of a discussion on Charitable Donations, thought you were referring to that topic.