Law & Legal & Attorney Tax Law

How to Donate Camera Equipment

    • 1). Determine the value of the camera equipment. A local camera store can give you an idea of the equipment's value. If it is in "good condition" -- the tax code uses the standard of "minimal monetary value" -- get a receipt from the qualified charity to which the donation is made. This is important because the IRS requires proof of the contribution if your tax returns are audited if the equipment is between $250 and $500.

    • 2). Appraise the camera equipment if its value is more than $500. Obtain a written valuation from an independent appraiser. When contributing the equipment to the charitable organization, receive a receipt from the organization, as well. If the organization sells the equipment, also obtain a copy of the receipt showing the amount for which the equipment sold.

    • 3). Fill out your tax returns reflecting the all charitable contributions on lines 16 through 19 of the long form, Schedule A, Form 1040. Consult publication 526 on the IRS website for more detailed information. For equipment valued greater than $500 or total charitable contributions in excess of $500 for the year, you must complete and attach Form 8283.

    • 4). Donating rare camera equipment, such as a Daguerreotype that was first introduced in 1822, could exceed either the gifting limits or charitable donation limits within a given year. This where deductions can become tricky. One of the originals, in good condition, could be nearly invaluable. But the amount of the contribution's value, whether monetary or a Daguerreotype, could exceed the limits which you can claim for the year in which it was donated. Charitable donations fall into one category and gifting falls into another. For charitable contributions, you're limited to claiming as a deduction 20 percent of your adjusted gross income in any given year. So the amount you might claim could be limited by the value of the donation as a percentage of your income. The good news is that you can claim the deduction spread over 5 years. Consult Publication 526, "Charitable Deductions," or consult with a tax adviser to determine how best to proceed.

    • 5). Gifting the equipment to non-charitable organizations can reduce your tax burden, as well. You may gift the equipment to anyone and claim up to $13,000 in total gifting deductions if you file your tax returns singly and $26,000 if you file jointly with your spouse. All the rules for donations to charity apply, especially including a receipt for your tax records. To file a gift tax return, use Form 709.

Related posts "Law & Legal & Attorney : Tax Law"

Leave a Comment