JAVAEBOY Posted March 29, 2014 Share Posted March 29, 2014 I tried to search for this here and online and didn't find what I thought was an apples to apples comparison. I have donated a number of my candle holder centerpieces for use at a Dog Rescue Charity event. My question is when I do my taxes next year, do I get to subtract only "my" cost of producing them, or the cost at which I would have sold them at one of my shows? To clarify the situation, in my case, these centerpieces were made specifically for the Charitable event, since the hostess chose the specific colors for the glass and surrounds in the double glass candle holders I made. I found an article on-line that I thought may have the answer, but it was talking about someone who sells the craft, in this case a vase, that they brought into their inventory for sale, they bought the vase for $50, and would have sold for $200. The shop owner in this case would only be able to deduct the $50 she paid for the vase from the maker of the vase, not the $200 she would have gotten if it had sold. I figured with all the knowledge and experience here, someone must have had the same or similar scenario. Thank you in advance. Quote Link to comment Share on other sites More sharing options...
Vicky_CO Posted March 30, 2014 Share Posted March 30, 2014 The charity should have given you a receipt for the donated items that you use on your taxes. If I donate a gift basket to a charity with a value of $45 I would have got a receipt with that value for my taxes. You need to make sure and get a receipt for donated items for tax purposes. Quote Link to comment Share on other sites More sharing options...
JAVAEBOY Posted March 31, 2014 Author Share Posted March 31, 2014 Vicky, I won't have a problem getting a receipt, since the Charity was sponsored by a family member. In that case, I am guessing you are saying the receipt should be for the value of the items as though I had sold them to customers? Quote Link to comment Share on other sites More sharing options...
sporadic Posted March 31, 2014 Share Posted March 31, 2014 The receipt should be for the value of the items (cost you paid). You cannot deduct the retail cost, only your cost. Quote Link to comment Share on other sites More sharing options...
ktaggard Posted March 31, 2014 Share Posted March 31, 2014 I was an accountant in my former professional life - before my kiddos - so i can help you on this one. You can only deduct cost basis for your product. Retail value is too subjective, so the IRS prohibits it. Just remember this general rule when dealing with taxes: whatever is least beneficial to you is probably the irs rule. I say it a little jokingly, but it is almost always true. Quote Link to comment Share on other sites More sharing options...
JAVAEBOY Posted March 31, 2014 Author Share Posted March 31, 2014 Thank you all for your replies. ktaggard, I agree with your assessment of the IRS Quote Link to comment Share on other sites More sharing options...
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