[Previous Months][Date Index][Thread Index][Join - Register][Login]
  [Message Prev][Message Next][Thread Prev][Thread Next]

Re: [IP] Pump upgrades - What happens to old pump?

> In a message dated 2/27/03 1:31:33 PM US Eastern Standard Time,
> email @ redacted writes:
> << Usually the pump company will allow you to return the old pump 
>  instead of paying the co-pay portion of the new pump. In the event
>  you do get to keep it, you may wish to donate it to IP for use by
>  others and take a tax deduction for it's value. This can offer
>  substantial tax savings as well as benefit others in the long run.
>   >>
> So how much (approximately) is the tax deduction? Do we figure it
> out or does IP figure it out? Do we get a receipt?
Insulin Pumpers provides a receipt for the item(s) and per the IRS 
guidelines, it is required that the owner of the donated items 
determine the fair market value. Here are the guidelines for 
determining the value to claim for the deduction

Since this insulin pump was used for a while it should be depreciated 
some amount rather than taking a deduction for its original purchase 
value. If you can find or get copies of the original invoices, that 
will assist you in establishing its value. The following paragraphs 
from IRS publication 526 may assist you:

Deductions Over $500 But Not Over $5000
If you claim a deduction over $500 but not over $5000 for a non-cash
charitable contribution, you must have the acknowledgement and written
records described under Deductions of At Least $250 But Not More Than
$500 (this is the receipt letter sent by Insulin Pumpers). Your
records must also include: 
1)	How you got the property, for example,
by purchase, gift, bequest, inheritance, or exchange. 
    (purchase since the insurance company purchased it for you)
2)	The approximate date you got the property or, if created, 
produced, or manufactured by or for you, the approximate date the 
property was substantially completed. 
3)	The cost or other basis, and any adjustments to the basis, of 
property held less than 12 months and, if available, the cost or 
other basis of property held 12 months or more. This requirement, 
however, does not apply to publicly traded securities. If you are not 
able to provide information on either the date you got the property 
or the cost basis of the property and you have a reasonable cause for 
not being able to provide this information, attach a statement of 
explanation to your return. 


Basically what that says is that you need to establish the purchase 
price and deduct some amount of use, wear and tear. That's the 
deduction allowed. It is the fair market value of the used pump if 
you had to purchase another like it on the open market.

email @ redacted
for HELP or to subscribe/unsubscribe, contact: