How do I record an in-kind donation for tax purposes?

I donated goods to a charity worth enough to want to claim on my taxes. How do I record this?

Best Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The very easiest way to do this is to create an offsetting Category to your charitable contributions entry and simply omit that offsetting Category from the tax report to the accountant.

Answers

  • Mark G
    Mark G Member ✭✭
    Thanks for these very thorough answers but looking for something maybe a bit simpler. Let's say the donations are household furniture and computer equipment. The computer equipment was expensed but that was years ago. The furniture is family stuff so that never hit my books. Neither was captured in an asset account. I could, as Tom suggests, simply record it on a piece of paper but I'd like to have this in my tax summary, which I pass along to my tax preparer at the end of the year. I guess I"m really asking what account I capture these transactions in. Would I need to set up a dummy asset account that would now have a negative balance? Should I add the items to this "Charity asset" account at the FMV and then record the contribution of them at the same value?
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The very easiest way to do this is to create an offsetting Category to your charitable contributions entry and simply omit that offsetting Category from the tax report to the accountant.
  • Mark G
    Mark G Member ✭✭
    Thanks.
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