Does anyone know if I need to have an independent valuation done to please the IRS if donating wine and I intend to report it as a non-cash donation (value >$5000)? Anyone care to recommend a company for performing the valuation? Thanks
I thought you could only deduct the cost basis?
Cost basis would be a lot easier since I’ve got that.
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specific donation circumstances aside… this is usually why for valuable wines that have appreciated a lot, it’s probably better to auction off the wine, and donate the cash…
u essentially get to MtM ur donation value.
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Sure, but you would also be responsible for reporting the capital gain on the auction sale.
Over $5K and you need an appraisal that meets specific criteria- over $500 for household items and some would argue that is where wine should be classified. Here is a link to an IRS guide that will get you started - https://www.irs.gov/pub/irs-pdf/p561.pdf
Sounds like you need advice from a tax professional.
Correct.
Assuming LT Cap gain, the donation offsets for personal tax. The charity gets market value cash, vs wine, which they would then have to raffle off.
Again, specific charity/donation circumstances aside.
