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This brings to mind a question---------say a top notch artist donates a piece of art worth a million dollars on the open market. Is he/she allowed to deduct the going price of a million dollars or just the $50 or so for a canvas and paints?Originally Posted by mermaid
My bet, in this case, is that he/she could deduct far more than the cost of materials.
Bad Spellers of the World
U N T I E
We all know that he can deduct the million dollars! My MIL is a tax consultant. She is very bright and goes to seminars throughout the year. She is one of the few that can represent her clients in court in front of the IRS. I am going to ask her this question.
I have never donated YET! Your Eligible Too! I have a few quilts rolled up with no place to go and after reading this thread, I would like to donate them! Not just for tax purposes, but maybe to our dialysis center or a nursing home. I didn't make these to save me on taxes. I'd rather someone enjoy them, but it's an interesting thread and I will find out from my MIL what the rules are on this and get back to you all.
Jeanne from the foothills of NE Oregon
"Remember that your instincts are more important than rules"
"The Constitution only guarantees the American people the right to pursue happiness - You have to catch it yourself" Benjamin Franklin
There are special rules for donations of that type. The first rule is it has to be appraised. Unless you are a famous quilter whose quilts are worth loads of money you don't need to worry about something like that.
You get to deduct the amount of the materials. BUT (big but) You should only use itemized deductions if they're more than the standard deduction and the standard has gotten so high lots and lots of people don't have enough itemized deductions to make it worthwhile.
If you could get a much higher credit for an appraised quilt, why on earth would you "worry" about it? If it were me, I'd get the appraisal in a heart beat.
Bad Spellers of the World
U N T I E
I've been making charity quilts for years and it would never have occurred to me to claim them on my tax. Not that I pay tax anymore. I love being retired.
Yes, charity quilts, knitten charity winter hats, double receiving blankets for babies, etc. etc. I don't claim any deduction for any of it. It's my gift to the needy.
I actually never thought about the tax end of donating quilts. I just like to quilt and can not use them all and so I donate to various raffles and silent auctions. The information was appreciated, thank you.
Yes, DD who is an accountant, says to save all receipts from postage and you CAN deduct it.
The cost of sending a charity top out to be quilted by someone else, such as a longarm quilter is also deductible; keep the receipts.
Ditto. I make quilts for my local Children's Service and for Quilts for Kids and will not be claiming them on my tax return.
Peace is one of His greatest gifts.
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