ST Alpha - "Technically no because you have no basis in the item. -- nm" (Reading a Post)

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In response to "can I claim as a deduction an item that was given to me that I then donate?" by prayformojo

Technically no because you have no basis in the item. -- nm

Posted by spamlet Sep 21 '21, 13:15

(No message)

Responses:

You can have a basis in property even if it was given to you as a gift, I thought. The basis would be what the original owner paid. -- (edited) - znufrii Sep 21, 13:26 5
- 🤔 I know you can for collectibles/securities but for general property as well? - spamlet Sep 21, 13:33 4
  - My only direct experience with this is what I wrote below, and I don’t feel like pulling up Pub 551 to find out the answer right now :) - znufrii Sep 21, 13:34 3
    - Heh. -- nm - spamlet Sep 21, 13:50 2
      - Who am I kidding - znufrii Sep 21, 13:54 1
        
        For corporates it does make the difference but I guess not people. PFM, sorry. -- nm - spamlet Sep 21, 14:00
the only way the IRS would find out he didn't buy it is if someone on ST snitched him out... -- nm - Beaker Sep 21, 13:20 1
- Correct. That’s why I said technically. -- nm - spamlet Sep 21, 13:24
thanks - what does this mean? -- nm - prayformojo Sep 21, 13:20 7
- Tax basis is essentially what you paid for something. - spamlet Sep 21, 13:23 6
  - I thought it was the appraised or 'reasonable' value. a huge tax loop hole for sure but was it closed? - zeitgeist Sep 21, 13:29
  - thanks for your answer and explanation. my wife we be glad to hear she was right -- nm* - prayformojo Sep 21, 13:28
  - So the basis of the gift isn't the value of the item when it was originally purchased? -- nm - oblique Sep 21, 13:27 3
    - This is my experience from when my brother gifted us all shares of stock for Christmas one year. - znufrii Sep 21, 13:28 2
      - Stock/collectibles are exceptions as far as I know. -- nm - spamlet Sep 21, 13:32 1
        
        Gotcha. -- nm - znufrii Sep 21, 13:32
but it is his property when being donated -- nm - Peglegpete Sep 21, 13:17
technicalities! It's only not allowed if you get caught -- nm - decline Sep 21, 13:16

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