Help me figure out how much I owe the taxman
April 5, 2012 10:22 AM Subscribe
Bought a lot at the school charity auction. How do I figure how much to deduct on my taxes?
posted by dudeman to work & money (6 answers total) 1 user marked this as a favorite
Background: Each year our kids' school PTA holds a charity auction. They are a 501(c)3 organization so tax deductions of donations are allowed.
My wife and I bought many items, some were bargains bought for less than stated value, some not. The auction receipt shows each of our items with the price paid, and states a value for each item. So how do I calculate my tax deduction properly?
I say: Tally up the values of all the prices paid, subtract that from the total value of all items, and you have your donation number.
My wife says: Just tally up the values of all the items bought above stated value, subtract the stated values, and you have your donation number.
Additional complication: we bought a gift certificate far below stated value, but never redeemed it, and it has now expired. Do we count the whole thing as a donation, or do we have to use the value as stated on the receipt?
I know you are Not My Accountant, but opinions from anyone well versed in these matters would be appreciated.