Originally Posted by
callum9999
Can you actually write off the "fair market value" though? Surely you'd have to write off what you actually paid for it, so in the case of the hotel rooms absolutely nothing, and for the flights just the taxes?
(I'm no expert either and this just seems like the common sense way to do it to me - which probably means it's wrong!)
Totally not an expert myself, but I've never had to establish a cost basis for items I've donated to charity - just the FMV. When I see people donating hotel rooms to silent auctions, I'm nearly 100% sure it's because they are writing them off on their taxes. There is an FMV listed on the bid sheet. When a donor gives something to an auction that they aren't writing off on their taxes, you usually see something cute like "Priceless" written as the FMV.
Of course, I usually do *not* see flights donated to these auctions, perhaps because of what
MSPeconomist is getting at: it could end up being more hassle for the donor and recipient to get the trip booked. Much moreso than getting, say, your typical Marriott Category 4 booked.
If I was ever to do this, it'd be with a small local charity that I knew well and cared about enough to take the time to help them book a good trip for the miles. I'd probably book directly out of my account and give them a letter stating that I'd donated the trip in case they ran into hassles at the airport. I'd do it that way regardless of whether I was going to later take a deduction.