My parents own a commercial building (not sure if S-Corp or partnership; it's pass-through for tax purposes). They evicted a tenant earlier this year for nonpayment of rent. Tenant left behind some misc hardware, the main one being a commercial water heater. My parents didn't want to deal with selling it or hauling it to the dump. Their church said they could use a water heater and would send people to haul it away, so they just donated it.They were expecting a receipt saying they donated an item worth $x, but the church says they don't do that anymore. So they just got a receipt saying they donated a water heater, no value specified. I made sure they got pictures of the heater before it was removed. I looked up the model number and it costs over $6000 (six thousand) new.They asked their CPA how to handle the donation. CPA said the IRS made it much tougher to donate used hardware, and that it probably wasn't worth dealing with it. I asked a friend who's a CPA and she said it's not that hard, you just have to get some sort of written documentation of its value. e.g. a quote from someone who buys used hardware.1. Who's right?
2. Where the heck can I find someone who buys used water heaters?
3. Since the company is pass-through, I assume the donation just goes on their personal taxes as a charitable donation?