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New Member
posted Jun 1, 2019 12:50:57 PM

Can you donate computer software?

I would like to donate computer software, how can I enter it?

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5 Replies
Level 15
Jun 1, 2019 12:50:58 PM

You enter it under the Deductions & Credits tab in the Charitable Contributions section. But be aware it may not help tax-wise. Charitable donations are a SCH A deduction. Until the total of all your itemized deductions exceed your standard deduction (which has doubled for the 2018 tax year) they will make absolutely no difference what-so-ever to your tax liability.
so if you're filing single or MFS, your standard deduction is $12,000. For MFJ it's $24,000. so it would take a "LOT" of itemized deductions before you'll see any impact on your tax liability.

Level 15
Jun 1, 2019 12:51:00 PM

Do you think you will have enough to itemize this year?  This year the Standard Deduction will be doubling so many people will be switching to the Standard Deduction.  And there is a max 10,000 limit of property tax and state taxes "SALT".

FAQ on 2018 changes <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return">https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return</a>

For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind

Level 15
Jun 1, 2019 12:51:01 PM

The value of the donation is the fair market value of the software, you may want to keep some kind of proof of how you determined that value, such as internet sales.  And of course, the donation has to be made to a registered exempt organization and you should get a receipt.

One point I'm not clear on is the software license -- if the license does not permit you to give the software away, then the donation may be disallowed if audited -- you can't take a deduction if you don't have legal authority to donate the item.  

Level 15
Jun 1, 2019 12:51:09 PM

Is it software that you bought or software that you created yourself? The amount you can deduct is your cost or the current fair market value, whichever is *less*.

If it's software that you created, you probably can't deduct anything. You cannot take a deduction for the value of your time. If you made a tangible item and donated it, you could deduct the cost of the materials. But with software there are no materials. Your cost is zero, so your deduction is zero. If you give the software to the organization on a CD, you could deduct the cost of the CD.

New Member
Mar 4, 2022 9:09:46 AM

I have a lot of PC software that I no longer use.  Who will take this as a donation?  Thank you.