Taxation Implications of Donated Items

From: "Anderson, Alfred I." <anderson@mayo.edu>
Subject: Taxation Implications of Donated Items
Date: Mon, 1 Nov 1999 07:49:15 -0600

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Here is an interesting scenario,

I have a rental house.  The tenant abandoned the property leaving many
personal articles behind.  These articles would be difficult to sell
(clothing, etc), so I elect to donate them to charity.  I value the donation
according to the "thrift-shop" rule.  This will generate a charitable
contribution for income tax purposes, effectively reducing my 1999 taxes. 

Question, how should this reduction in 1999 taxes be treated?
  - Should the reduction be applied as "rent" on the property and thus
taxed?
  - Should I consider the abandoned property as a "gift" in which case no
taxes would be owed?
  - Should I just take the deduction with no offsetting income?
 

Interesting dilemma, no?

Alfred Anderson
Mayo Foundation
(507)-284-9123 voice; pager 4-6014
Internet: Anderson@Mayo.edu


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