How does length of ownership affect donated items to charity deductions? Why does TTax program ask if owned more or less than a year? Thanks.

• If you have owned the property more than a year, you can deduct its full fair market value and escape income tax on the appreciation.
• For property held one year or less, IRS only allows you to claim a deduction on the price you paid for it.

for an item held short-term, the deduction is the lesser of tax basis or FMV.

for an item held long-term, the deduction is FMV with certain exceptions:

1) tax basis (excepting qualified appreciated stock) if contributed to a private non-operating foundation or

2) tax basis if the property is tangible personal property that is put to an unrelated use by the charity or

3) the taxpayer elects to apply the 50%-of-agi limitation rather than the 30%-of-agi limitation