"Mike Fachman" wrote in message
...
I have heard of some folks in the hobby donating commons or just some
stuff that they don't want anymore to charity. Then they can deduct the
donation from their taxes using beckett pricing. (for example .05 per
common on '87 Topps baseball)

I have finally decided to try this and I found a local charity that will
accept the cards. I have over 70,000 cards to donate, so it would be a
nice sized deduction. I am wondering if anyone else has done something
like this before and if so do you have any advise?

Interested in your thoughts,
Mike

..Mike Fachman

My Trade list can be found at:
http://community.webtv.net/MikeFachm...hmansTradePage


This comes up every so often concerning common cards, stamps, etc. It is my
understanding that a charitable contribution deduction is taken at the lower
of cost or market value. The IRS knows there's a difference between book
value and market value of collectibles, and is also aware that lower value
items sell for a fraction of book. People who claim full book for commons
are taking a risk - if the IRS doesn't question or audit them, they'll get
away with it. If disputed by the IRS, you'd need to provide proof of actual
value claimed, and would almost certainly be denied that large of a
deduction. There could also be some concern over fraud.
Also keep in mind that a deduction that large (over $500) would require
providing details such as original price, how it was acquired, who it was
donated to, and a description. If you claimed $3500 in trading cards, it
could send them a red flag.
Bottom line, others may be doing it & getting away with it for now, but I
would take a more reasonable deduction - what they would actually sell for.
This should be more within the letter & intent of the law.
Oh, and it appears the IRS has begun random audits again on non-red-flagged
returns.

The above is just my opinion & should not be taken as legal or accounting
advice. As someone else mentioned, just ask an accountant. Or read the IRS
publication 561 on valuing charitable contributions.

Scott out.