With everyone putting their tax information together these days just remember one thing about contributions...
If you are attending a fund raising event and you are lucky enough to win the silent auction and you end up paying $500 for a diamond that is worth $1000 - you DO NOT have a charitable contribution because you paid less than its fair market value. However if you paid $1250 for it you would be able to deduct as a contribution on Schedule A $250 (the difference from what you paid and what the FMV was).
As always consult with your tax professional before making any assumptions!
Satisfying Accounting and Tax Needs for Individuals and Corporations Throughout the United States for over 85 years.
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