I inherited clothes from my Mom. If I enter a value of $2000 and enter a cost of $0, the donation is listed as $0. If I change the cost to $2000 or higher, the donation becomes $2000. I believe the value should be all that's needed. How do these do figures impact the donation? I nearly missed out on these! I thought it was zero because my income was too high or some other limit on my donations.
You'll need to sign in or create an account to connect with an expert.
Your basis/cost should be the lower of cost or FMV on the date you received them. If you had said $0 cost and had recently gotten them, Normally items do not appreciate and IRS has a rule:
Rate of increase or decrease in value.
Unless you can show that there were unusual circumstances, it is assumed that the increase or decrease in the value of your donated property from your cost has been at a reasonable rate. For time adjustments, an appraiser may consider published price indexes for information on general price trends, building costs, commodity costs, securities, and works of art sold at auction in arm's-length sales.
Hence why you should be careful in entering your cost basis.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
gregdenisej
New Member
chsalamon
Returning Member
jcd_3
New Member
leerw1976
New Member
Bob1980
New Member