Partnership Form 1096. Donation of brand new clothes never used for tax deduction purposes.?
Have brand new unused t-shirts to donate which did not sell.As we have a partnership business and file Form 1065, can we donate brand new unused clothes to Goodwill,Salvation Army,Churches etc as noncash donations and how do we fill out the value of the clothes when the recipient gives us blank donation forms and we fill out the value. Is there a $ limit as to how much we can get deduction based on the income received as pass through and will the IRS ask for proof of value.
Need help please as to what documents do we need as proof to prove that these are the value of the goods in case of audit if it happens and if the value is above $1000.
- mercedesLv 71 month ago
Form 1096 is the cover sheet for Forms 1099
- Anonymous1 month ago
The problem is going to be calculating the FMV (the amount is it likely to sell at Goodwill, Salvation Army, churches, etc)--which is going to a LOT of t-shirts and then comparing it to your cost basis. Donations, if any, pass through to the partners and would not be part of 1096. If the amount you can claim is over $500, you will need a qualified appraisal.