This year I donated a framed, autographed NFL jersey to a charitable organization for their silent auction. I want to take my allowable tax deduction, but I am unsure of what that amount is. I purchased the jersey, paid a fee to have it signed at an autograph show, and paid to have it framed. Am I entitled to the costs I have put into the item, how much the item sold for, the retail amount of the item (some Fair Market Value), or something completely different?

ANSWER

The BIDaWIZ Team's Answer:

It really depends on what the organization does with the sports memorabilia. Generally speaking, the deduction for a collectible is measured by the fair market value of the property donated. In determining the fair market value, you'll need to find out how the organization uses it. If they plan to sell it, then you can only deduct the amount that they sell it for. If they plan to use it for their organization, then you can deduct the fair market value based on the appraisal. Please make sure that you have proper documentation to support the sale price or value. Please let us know if this answers your question. Also, make sure the organization is a registered 501c(3).