$7,000 in Medical supplies to a Goodwiill?

[ripvanwinkle]

Due to a few surgerys over the last 2 yrs, I have medical supplies left over. I did a spread sheet of all my supplies.
I went online and searched the name and part number and got the retail value of the items. It is over $7k ! I found that Goodwill will take these items.
Will the $$ amount cause a red flag on my 2011 return?

[activeonlooker]

Is retail what you paid for them?
Did you deduct them in the year you purchased them?
Or did insurance pay for them?

[commentator]

Tax basis is zero. If held for more than a year, however, tax deduction is FMV which is like to be less than retail, even if unopened.

[mwcpa]

to add to the two prior comments let's not forget this from IRS publication 561.....

"Deductions of More Than $5,000
Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must attach Section B of Form 8283 to your tax return. There are exceptions, discussed later. You should keep the appraiser's report with your written records. Records are discussed in Publication 526.

The phrase “similar items” means property of the same generic category or type (whether or not donated to the same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing, jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or silver. For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively, your claimed deduction is more than $5,000 for these books. You must get a qualified appraisal of the books and for each school you must attach a fully completed Form 8283, Section B, to your tax return. "

I find it unlikely that unused medical supplies that cost over 7,000 a year or two years ago are still worth the same today..... and the cost of the appraiser is NOT deductible.... so the net actual tax benefit may be minimal.... say the value is worth 2,500 the tax savings at the 25% rate = 625... if the appraisal costs 400, is the 225 net difference worth the effort.... in that case I say give the stuff away and be known as a nice person, unless the 225 is worth the extra effort...

[nancy65]

May 9, 2011 6:48:49 GMT -5 mwcpa said:

I find it unlikely that unused medical supplies that cost over 7,000 a year or two years ago are still worth the same today..... and the cost of the appraiser is NOT deductible.... so the net actual tax benefit may be minimal.... say the value is worth 2,500 the tax savings at the 25% rate = 625... if the appraisal costs 400, is the 225 net difference worth the effort.... in that case I say give the stuff away and be known as a nice person, unless the 225 is worth the extra effort...

If you're going to deduct $2,500 as FMV, you wouldn't be needing the appraisal, would you?

[mwcpa]

maybe I should worded it better Nancy...

..... if you think it's worth 7000 then you need an appraisal, if the appraiser says it's only worth 2500 then you are were I noted....

[rangerj]

How much is a used urinary catheter worth?

[TheOtherMe]

May 14, 2011 10:16:42 GMT -5 rangerj said:

How much is a used urinary catheter worth?

;D