Quote:
Originally Posted by canjond
I still don't follow how you have income earned if its a donation? If I donate something worth $10,000, ho did I realize any income on that item. I gave it away for free, regardless of the value. I, as well as probably countless others, donate clothing to the Salvation Army every year. I don't have to declare the FMV of my clothing donation as income.
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Because every time you donate clothes or cars it's assumed that you purchased it for more than the donated value.