TWW
Level 1

client received a grant and purchased equipment.  he then S179 that property.  next year (over 1 year) he wants to donate that property with sizable FMV to a charitable organization.  since his basis is 0 does he get any donation deduction?

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Terry53029
Level 15
Level 15

 the tax rules limit the amount of your charitable deduction to the asset's FMV minus the amount of ordinary income that would result in this hypothetical sale.

sjrcpa
Level 15

Also, does donating/disposing it violate the terms of the grant?


The more I know the more I don’t know.