Claiming charitable donation - cost paid vs actual market value for golf foursome

I'm planning to donate a golf foursome package to a charity auction at a local golf tournament. I got this package at a special rate but the actual market value is way higher. When tax time comes around, I'm confused about which value I can legally claim on my return. The price I paid for the foursome was $325, but the actual market value (what they normally charge) is around $1,200. That's a pretty big difference! Will the IRS let me deduct the full market value, or am I limited to just what I actually paid out of pocket? The charity definitely gets the benefit of the full value when they auction it off, but I'm not sure how this works for my tax situation. Anyone have experience with this kind of charitable donation where your cost basis is significantly below market value?

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18 comments

Luca Russo

•8M

When you donate property (like a golf foursome package) to charity, your deduction is generally limited to your "basis" in the property - which is typically what you paid for it. The IRS doesn't allow you to claim a deduction for the appreciated value of something you donate unless it meets very specific criteria. In your case, you would likely only be able to deduct the $325 you actually paid, not the $1,200 market value. This falls under the general rule for donated property where your deduction is limited to your cost basis. There's an exception to this rule for certain types of "capital gain property" like appreciated stocks or real estate held long-term, but a golf package you recently purchased wouldn't qualify for this treatment. Make sure to get a receipt from the charity showing your donation, and if the value exceeds $250 (which yours does), you'll need written acknowledgment from the charity to claim the deduction.

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Luca Russo

•8M

For donations of tangible personal property, the rules depend on the type of property and how the charity will use it. In the case of memorabilia, if it was considered a collectible and you owned it for more than a year, different rules might apply. For items purchased specifically to donate (like buying a golf package to give to charity), you're generally limited to your cost basis. The key distinction is whether you're donating something you've owned as an investment or collectible versus something you acquired specifically to donate. Also, how the charity uses the donation can affect the deduction amount - if they use it in a way related to their exempt purpose versus selling it at auction.

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GalaxyGazer

•8M

After struggling with this exact issue last year, I found this amazing AI tool called taxr.ai (https://taxr.ai) that really helped me figure out my charitable donations. I was donating some artwork to a local museum auction and wasn't sure if I could claim the appraised value or just what I paid. The tool analyzes IRS publications and explains exactly what you can claim in your specific situation. It showed me the difference between donating appreciated property I'd owned for years versus items I bought specifically to donate. They even have specific guidance for auction donations which was super helpful for my situation.

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GalaxyGazer

•8M

It absolutely works for specific scenarios - that's what makes it different from generic advice sites. You can describe your exact situation and it pulls from current IRS publications to give you a personalized answer. It's particularly good with unusual deduction questions like this one. For your concern about keeping up with tax changes, that's actually one of its strengths. The system is continuously updated with the latest IRS publications and tax law changes, unlike some software that only updates annually. It cited specific sections of Publication 526 for my auction donation question and explained how the 2023 updates affected my situation.

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Mateo Sanchez

•8M

Just wanted to follow up! I tried taxr.ai for my donation question and it was actually super helpful. I uploaded my donation receipt and it explained exactly what I could deduct based on my specific situation. Turns out I could only claim my cost basis since I bought the items specifically to donate, but it showed me how to document everything properly to maximize the deduction I was eligible for. I was also able to ask follow-up questions about how this affects my itemized deductions vs standard deduction and got clear answers. Definitely worth checking out if you're confused about charitable donations!

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Ethan Moore

•8M

If you're having trouble getting a straight answer from the IRS about charitable donations, I highly recommend using Claimyr (https://claimyr.com). I was on hold with the IRS for literally HOURS trying to get clarification about charitable donation rules, and finally gave up. Then I found Claimyr and they got me connected to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they use technology to wait on hold for you and then call you when an actual human at the IRS picks up. The agent I spoke with confirmed exactly how to handle my donation documentation and what value I could legally claim.

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Ethan Moore

•8M

It's not that they get through faster - they just handle the waiting for you. When you use the service, they have systems that call the IRS and wait on hold instead of you doing it. Then when an actual IRS agent picks up, they call your phone and connect you directly to that agent. So you don't have to listen to the hold music for hours. The service exists because the IRS wait times have gotten so ridiculous. When I used it, I went about my day and got a call about 45 minutes later with an IRS agent ready to talk. It's basically like having someone else wait in line for you. The video shows exactly how it works if you're curious.

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Aisha Mahmood

•8M

I need to publicly eat my words here. After being super skeptical about Claimyr, I was desperate enough to try it yesterday because I needed an answer about my charitable donations before filing. It actually worked exactly as advertised! I signed up, and about 35 minutes later got a call connecting me to an IRS representative. I didn't have to sit on hold at all - just got a notification when they were about to connect me. The agent confirmed that for items purchased specifically to donate, I can only deduct my cost basis (what I paid), not the fair market value. This saved me from making a potentially costly mistake on my return, since I was about to claim the full value. Honestly shocked this service actually delivered what it promised.

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Carmen Vega

•8M

Something important nobody's mentioned yet is that to claim ANY charitable deduction over $250, you need a specific kind of written acknowledgment from the charity that meets IRS requirements. The documentation needs to state whether you received any goods or services in exchange for your donation. I learned this the hard way when I got audited a few years back. Even though I had donated legitimately, some of my deductions were disallowed because I didn't have the proper acknowledgment letters. Now I always make sure to get proper documentation before filing.

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Carmen Vega

•8M

Yes, the acknowledgment should include a description of the donated property (doesn't need to state the value - that's actually your responsibility to determine). It must explicitly state whether you received any goods or services in return for your donation. If you did receive something in return, the charity needs to provide a good faith estimate of its value. You need to have this documentation before you file your tax return - not just for a potential audit. Technically, the IRS requires you to have this written acknowledgment in hand by the date you file your return or the due date of your return, whichever comes first. I'd recommend getting it right after making the donation so you don't forget.

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