donating inherited personal items
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I have a client whose mother passed last year. The client inherits two truckloads of clothing and household items. She keeps a detailed listing, so documentation isn't a concern, but I can't find anything that supports a non-cash charitable contribution. Has anyone else ever run in to something like this?thanksjeff
Answer
Had the same issue a few years ago. The IRS Pub on Charitable contributions does cover this and there is a selection on Lacerte's 8283 input page for method acquired as inherited. Since heir's cost basis is based upon FMV at date of death and donations are usually made shortly thereafter, I used the same amount in basis and FMV fields
Answer
Depending on whether there is a Federal or State estate tax, those items might be listed among "miscellaneous assets" of the estate, and that might provide further documentation for basis on the Form 8283 of the heir that gave away the items.
If there wasn't any necessity for a Federal or State estate tax (if the decedent had a small enough estate, even for State purposes), then the above wouldn't apply.
But if there is an estate tax return of some sort, it would be prudent to include on the estate tax return, the assets (and a value for them) which went to the heirs and then went to charity on the heirs' 1040's.
