I have a couple of computers sitting in storage that I don't use, and I don't honestly know if they work(one of them doesn't for sure, the other one, I just don't remember). I want to get rid of these computers, and I know there are places where I can donate these computers to be put back together and refurbished for schools and other charitable organizations.
I was curious how this applies to the concept of a "tax writeoff", and what benefit that has for me? I don't know anything about this, but it sounds like it might save me some money. If not, oh well, but I would like to know a little bit more about it, since I'm sure this won't be the last time I end up donating something I don't use to a charity or other organization.
Thanks in advance!
2007-08-07 16:30:48 · 3 answers · asked by Nick K 1 in Business & Finance ➔ Taxes ➔ United States
It wouldn't be a tax-write off, but would be a non-cash charitable contribution, and would be deducted on Schedule A - Itemized Deductions, under charity - non-cash. The only thing is, if one doesn't work, it isn't worth much if anything at all, and on donating something other than cash, you get a donation for the market value of the item, what it is worth. So by donating a broken computer, you would be donating something worth nothing, and that is what you would get for a non-cash deduction. Oh, to get any benefit also from the non-cash deduction, you have to itemize as well, with your total itemized deductions being more than your standard deduction.
PS, Kathy A is partly incorrect. You can't donate to a person, it has to be an organization. Donations to a person are not tax deductible. Also, if you donate the computers this year, you would report the donation on your 2007 Schedule A, which you will fill out in 2008.
2007-08-07 16:38:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Pepsilime has given you good info. In addition, the rules changed this year, and you can't take a deduction for an item that is not at least in good used condition. So as he said, the computer that isn't working would be a zero deduction.
If you are looking for a place to donate them, Goodwill has a large computer donation program. Even if you don't end up with a tax writeoff, you'd clear out some storage space, and there might be at least parts of the computers that they can use.
2007-08-08 10:51:18 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
the person you donate to, usually gives you a written amt and what you donated, which you then take off your next yrs taxes (08). You have to itemize and make sure the reciept says charity. ( they like to audit if you don't donate to charity much...)
2007-08-07 23:36:40 · answer #3 · answered by Chrys 7 · 0⤊ 4⤋