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Deduction for computer donations: Prove it or lose it

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in Small Business Tax,Small Business Tax Deduction Strategies

Are you ready for a computer upgrade? If the answer is "yes," don't just toss out your old equipment.

Strategy: Donate the equipment to a qualified charity that needs used PC equipment. That way, you can generally deduct the fair market value of the equipment on the date you make the charitable contribution.

So, you get a tax deduction for property you were essentially going to toss in the trash.

But remember, it's vital to keep de-tailed records to back up your charitable deductions in case the IRS calls you on the carpet. Without such backups, you may get no deduction at all.

3 recordkeeping hurdles

Generally, you can write off donations of used personal assets as long as they're given to a qualified charitable organization. If those assets have depreciated in value—such as used computer equipment—the deduction is equal to the asset's fair market value.

You must meet strict IRS recordkeep...(register to read more)

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