Contributions of Property
IRS
Publication 526
If you
contribute property to a qualified organization, the amount of your
charitable contribution is generally the
fair market value of the property at the time of the
contribution. However, if the property has increased in value, you may have
to make some adjustments to the amount of your deduction. See Giving
Property That Has Increased in Value, later.
For
information about the records you must keep and the information you must
furnish with your return if you donate property, see Records To Keep
and How To Report, later.
Contributions
Subject to Special Rules
Special
rules apply if you contributed:
- Property
subject to a debt,
- A partial
interest in property,
- A future
interest in tangible personal property, or
- Inventory
from your business.
These
special rules are described next.
Property
subject to a debt. If you contribute property subject to a debt (such as a
mortgage), you must reduce the fair market value of the property by:
- Any
allowable deduction for interest that you paid (or will pay) attributable
to any period after the contribution, and
- If the
property is a bond, the lesser of:
- Any
allowable deduction for interest you paid (or will pay) to buy or carry
the bond that is attributable to any period before the contribution, or
- The
interest, including bond discount, receivable on the bond that is
attributable to any period before the contribution, and that is not
includible in your income due to your accounting method.
This
prevents a double deduction of the same amount as investment interest and
also as a charitable contribution.
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