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.
No, the basis is not the fair market value - the basis is needed to determine how much is deductible when you donate property:
If you contribute property with a FMV that is less than your basis in it, your deduction is limited to its FMV. You can't claim a deduction for the difference between the property's basis and its FMV.
If you contribute property with a FMV that is more than your basis in it, you may have to reduce the FMV by the amount of appreciation (increase in value) when you figure your deduction.
For example, if you donate a used handbag that you paid $500 for (your basis)- now because it is used and worn the FMV is $300. Since the basis is more than the FMV, your deduction is limited to the FMV. If, however, you donated a designer handbag that you paid $500 (your basis) but now it is a collectible worth $1,000 your deduction is limited to the $500.
But it is asking this for multiple items donated to one facility. What do you enter there when not a SINGLE item is set to a value, but it is a total of multiple values?
Charitable contributions must be listed by date, place and similar items can be grouped.
For example, in your notes
Goodwill, Main St, Anywhere, USA
Household goods 1/1/2022 & 9/5/2022,
Toys 2/5/2022 & 5/6/2022
Clothing 6/25/2022
VA
Furniture 8/12/2022
and so on to prepare entries, one group at a time.
If you are using Its Deductible, it should bring the information over for you.