Charitable Produce Donations

[bellistondeseret]

We donated several pounds of produce from our garden to our local Food and Care Coalition.  For each donation, they provided me with a receipt of pounds of produce and its value.  Where do I enter these donations into TurboTax?  Remember that these donations are food and not household items or clothes.  Would this be considered a money donation since they gave a value of the produce?  Please get back to me as soon as possible.

[Anonymous]

not a gift of cash.  

your deduction is not the value shown on those receipts 

Generally, contributions of property are valued at FMV (fair market value) at the time of the donation.

However, there are exclusions. Property that would create ordinary income is limited to its basis.

Ordinary income property is property that you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. Thus, if you would have sold the produce for $75, and your basis in growing it was $25. The donation would be $25. FMV of of $75 minus the $50 of "ordinary income" that would have been recognized had you sold it, equaling your basis of $25.

If your basis in growing it is $0 then the deductible amount of the donation is $0 All of the potential income would be ordinary income.

See Publications 526 and 561.

[bellistondeseret]

Thank you, that helps!