Originally Posted by UglyCook
Originally Posted by ckcowl
according to the tax laws you are allowed to claim the cost of materials (pattern everything included) so i would say go ahead and start it at $100 but can you put a minimum on it? if so the $250 you have into it would be appropriate. the thing about auctions is if you start high no one bids, there is a better chance of getting a good price if it starts low enough to get bidding started. i had one once that i had $200 into... it was to be raffled...the group did n't (bother) very much with selling tickets...they made $45 on it...i was so ticked i have refused to ever make them another one...but i had one that sold for $1800 so you just never know...but the rule really is, once you donate it...it's not yours anymore, so what ever they do with it is their gain (or loss) you get to claim the $250 you put into it on your taxes (if you itemize)
I believe that you can claim a charitable contribution for fair market value (FMV). You will want to document your sources for determining FMV.
http://www.irs.gov/pub/irs-pdf/p561.pdf
http://www.irs.gov/publications/p526...link1000229745
And don't forget, it must have been given to a registered charitable organization
When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.