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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
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