We donated our personal sound system to a high school event and did not charge them. They gave us an invoice for $2000.00 for a donation. How to we record that?

[maglib]

so you donated the use of the item for an event and did not donate the item?

[carolc-03]

That is correct. The amount was based on last years invoice from the rental company they used.

[maglib]

see answer below.  It is sadly non-deductible the way you did it.  Partial use of property.

[maglib]

Partial Interest in Property
Generally, you can't deduct a charitable contribution of less than your entire interest in property.

Right to use property. A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible.  https://www.irs.gov/publications/p526#en_US_2017_publink1000229698
Example 1.

You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.

Example 2.

Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fundraising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduction either, because she received a benefit equal to the amount of her payment. See Contributions From Which You Benefit , earlier.

Exceptions. You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items.
A remainder interest in your personal home or farm. A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property.
Example. You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. You can deduct the value of the remainder interest.

An undivided part of your entire interest. This must consist of a part of every substantial interest or right you own in the property and must last as long as your interest in the property lasts. But see Fractional Interest in Tangible Personal Property , later.
Example. You contribute voting stock to a qualified organization but keep the right to vote the stock. The right to vote is a substantial right in the stock. You haven't contributed an undivided part of your entire interest and can't deduct your contribution.

A partial interest that would be deductible if transferred to certain types of trusts.
A qualified conservation contribution (defined later).

[maglib]

It is sadly non deductible.  You would have been better off donating cash and allowing the company to rent it from you.... but you would not have been allowed to require them to rent from you. If that makes sense.

[maglib]

To further enforce that ruling:  <a rel="nofollow" target="_blank" href="https://www.nolo.com/legal-encyclopedia/if-i-donate-vacation-rental-charity-auction-the-value-rental...>

[saadaugherty]

This should be filled in under the charitable donation section.  Although, you may have to fill out an additional form if it exceed the limit.  Unfortunately, I do not know the form number as I have never donated a substantial amount as you have.