I donated 1000 airline miles to a charity. How do I determine the value to deduct?

[marcymilko]

the charity is MILES OF HOPE

[PatriciaV · Accepted solution]

The IRS recognizes award points and miles as a gift or an award from the corporation (airline) to the individual. Therefore, points and frequent flier miles donated to charity are not considered tax deductible.

[Hal_Al]

The tax deductible amount when you donate an item (rather than money) is the lesser of the fair market value or your cost basis. The miles you donated have zero cost basis, so you deduction value is 0.

[physicsguru]

I'm not tax expert, but that line of reasoning would say if I donated a brand new pair of jeans to Goodwill I was given for Christmas, I couldn't deduct it.

[Hal_Al]

The recipient's cost basis in a gift is the givers cost basis. If you receive a new pair of jeans for Xmas, you cost basis is what the giver paid.
The Airline's cost basis in the points they give you is zero. They may have value, but they don't have a cost

[Belldemare]

Which does not address the situations in which the individual purchased airline miles because those miles do have a cost value.

So, if I purchased 1000 miles at $4 per mile then my cost basis is $4000.  If the airline is still selling those miles at the same cost then their value is unchanged  etween when I acquired them and when I donated them.  I should be able to take the full donation, if value is what you are basing it on.  

You would, however, be limited to the mikes you actually purchased and the cost of those miles so you would have to be able to justify all of those donation mikes.  Which should not be an issue as you should have a receipt for miles any time you purchase them.

correct?  If you buy them, they are not a gift.

[fanfare]

ask the charitable organization for a receipt for the value of your donation.

That's what my organizations do.