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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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03/22/08 11:10pm PDT

Recording a loss on sale of business property donated to charity

I may be off base here, but I have a separate question regarding that earlier post I did tonight about the $10,000 charitable auto donation. The vehicle was purchased for $23,628 during Feb 2007. It was a Lincoln Town Car used for a Schedule C Limousine Driver business. It was purchased outright, it was not financed. Donated to charity because of a flood on 8/28/07. This flood was due to the tornado that happened in NYC in 8/07. I have the form 1098-C equivalent from the charity saying the car's gross proceeds were $10,000 Would the difference of $13,628 ($23,628 price less $10,000 charitable donation) be treated as a loss on Form 4797 Line 10 since it was held less than a year? Are items donated to charity that can no longer be used for business purposed treated as a sale for the charitable amount and then the difference recorded as a loss on Form 4797? I don't think that is right as it was not a sale of business property, but that was my first thought. Or would it be a casualty loss on Form 4684 for the difference of the $13,628. I think this makes more sense since the casualty was due to the tornado and there was no actual sale, it was a charitable donation as a result of the tornado. Or, is it something totally different? As I was entering the car on Schedule C, I realized it would not allow any depreciation because I put the end date as 8/07. I think there should be some sort of loss because the total outlay was $23,628 and between the charitable donation of $10,000 and the loss of $13,628 and the car is not being used anymore and everything happened in 2007. On the other hand, I am confused as I have not had this issue before. Any help would be appreciated.

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adrianand
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04/24/08 1:12pm PDT
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So how much did he get from the insurance company. That has a lot to do with how much his basis is and how much loss he can claim. The general rule is to subtract the first $100 that is not deductable, then subtract insurance proceeds, then the amount left can be used for the casulty loss.

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