I'm trying to determine how much a given piece of software is worth (in terms of tax deductions) if it's donated to charity. Searching the web for this only turns up deduction calculating software.
2007-12-12 13:58:59 · 2 answers · asked by Andy W 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Depends. If you wrote the software yourself, the deduction is limited to your out-of-pocket costs directly attributable to the donated software. You may NOT include the value of your own time. In most cases about the only thing you will be able to donate is the cost of the distribution media such as CDs or DVDs
If you bought the software the deduction is limited to the lesser of your cost or the fair market value of the software as of the date of the donation. Bear in mind that software that is out-of-date is probably valueless on the open market. You must also have the legal right to redistribute the software to take any deduction.
2007-12-12 15:46:27 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you can figure out a fair market value you can use that. Is it something sold on ebay? That could give you an idea.
2007-12-12 14:44:33 · answer #2 · answered by Judy 7 · 0⤊ 0⤋