vaustincpa
Level 2
‎03-03-2023 04:38 PM
The historical museum is using the client's collectible train engine in their exhibit.  Client paid $787 in 2001 but now it's worth $1,000 and we have a letter from the charity stating the $1,000 value.  Pro Series uses the cost.  Can I change the basis to the FMV for this purpose?
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Just-Lisa-Now-
Level 15
Level 15
‎03-03-2023 04:52 PM

Nothing in Pub 561 about it?

https://www.irs.gov/publications/p561


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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sjrcpa
Level 15
‎03-03-2023 05:03 PM

For what purpose? He's lending it to the museum?

No tax consequence and no basis adjustment.

EDIT: I think you changed your OP. Now it says client donated it to the museum.

All conditions being met, client gets a charitable contribution deduction of the FMV.


The more I know the more I don’t know.
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taxes96786
Level 9
‎03-03-2023 11:57 PM

If anywhere it goes to basis but, any increase in basis is usually calculated at time of sale. There is no tax return input at this point. FMV can increase or decrease over the years the item is owned.

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PATAX
Level 15
‎03-04-2023 05:40 AM

If the client still retains ownership then there is no donation and therefore no entry. Loaning something to an art gallery or a museum does not transfer ownership as far as I know, therefore no donation.

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qbteachmt
Level 15
‎03-04-2023 12:44 PM

I think you want this one, pg 11, right column:

https://www.irs.gov/pub/irs-pdf/p526.pdf

 

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