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richardgordonkat
New Member

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

 
6 Replies
DianeW
Expert Alumni

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

Giving Property That Has Increased in Value

If you contribute property with a fair market value (FMV) that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction.

Your basis in property is generally what you paid for it. If you need more information about basis, see Pub. 551.

Different rules apply to figuring your deduction, depending on whether the property is:

  • Ordinary income property, or

  • Capital gain property. - Amount of deduction—General rule. When figuring your deduction for a contribution of capital gain property, you generally can use the FMV of the property.

For exceptions to the general rule, to confirm you are allowed the full FMV you can click this link: IRS Publication 526 Charitable Contributions

If you actually sold property and then turned the money over to the charitable organization, then you have to report the sale and then take the contribution deduction.

Please add a comment if you have questions.
Herb57
New Member

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

I am working with the Premium version of TurboTax and it appears there is no way to enter a bargain sale to charity. I have a 8263 form all filled out and there is absolutely no way to enter the information and generate a proper 8263 form. All it will generate is a worksheet that is pretty much worthless. Very frustrating. 

Herb57
New Member

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

I meant form 8283.

m_a_c_e
New Member

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

Error is still present for 2019.

 

Claimed deduction should be the diff in the FMV and the bargain sale.  Still showing claimed deduction as the full FMV.  Unsure how this is impacting things.

art32
Returning Member

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

I have the same problem but I think you mean Form 8283.  There is a work sheet but  it doesn't allow me to enter the data wanted on 8283

MarilynG1
Employee Tax Expert

Tax bargain sale. entered the sales price and basis. The charitable donation amount should be the difference, but Turbo Tax shows the sales amount as the deduction.

Form 8283 for Non-Cash Charitable Donations has not yet been finalized by the IRS.

 

The scheduled date is 1/20/2022.

 

Click this link for a listing of Federal Tax Form Availability

 

@art32

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