Originally Posted by elmerj222
#1;I started crafting items to sell for fundraisers for a charity event last year, purchasing supplies to do so. Obviously, not all of the supplies have been used as of yet, but they were purchased for the sole purpose of raising money for the charity's event that my husband's company participates in each summer. How would I deduct these expenses?
#2;Would it be considered a cash contribution since the items get sold and the money is then contributed?
#3;We don't get any statements from the charity as individuals as all the money is pooled. Please help! Thank you so much for your assistance.
#1;aslongas you donate the supplies, you may deduct fmv of the supplies donated to the charity.if it is capital gain pty, then, you may deduct fmv only if you held it for more than 1 year; if it ‘d produce ordinary income, you may only deduct original costs, not fmv. U can deduct unreimbursed outta pocket exp,i.e., cost of gas/oil directle related to the use of car in giving services to the charity.ou can’t take a ded for clothing/hh items donated after aug 17, 2006.
#2; no.please read below;note. As mentioned above.UNLESS you donate cash, you need to use the FMV to determine the value of your donations. Locate similar items selling in second hand shops or auctions to determine the price they are selling for, or get an estimate for the value of some common items given to charity; typically the group to which you make the donation will either re-sell the items and give the proceeds to programs for needy people, or they will donate the items directly to the needy.
you need a receipt/ reliable written records for each item donated
#3;for deduction,the IRS requires that you obtain a receipt if the value of the items you donate is $250 or more. Even if the value is less than $250, it still is wise to keep a receipt for your records. The receipt and your list of items stay with you; they do not get attached to your tax return.so, you need to get a signed receipt from the charity to which you donate. The receipt should include the name and address of the charity, the date of the donation, a general description of the items donated. Also, the receipt should contain a statement that you received nothing in exchange for your donation.
Note;you can’t deduct a cash contr. Regardless of amount, without a RECEIPT FROM CHARITY or you need canceled check/ bank credit union stmt/ bank record