Taxpayers are generally allowed to deduct the fair market value of property that they contribute to a charity.
However, for a long time, the Internal Revenue Code has limited the amount deductible in certain cases (e.g., contributions of tangible personal property where the charity's use of the donated property is unrelated to its exempt purpose, and contributions to certain private foundations) to the lesser of the taxpayer's basis in the property or the property's fair market value.
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