How does cost/adjusted basis relate to fair market value?

Cost/adjusted basis is generally the amount you paid for an item.

Fair market value is the amount you can reasonably get for the item if you sell it today.

If the cost/adjusted basis is less than the amount that you’ve entered for the fair market value and the date you acquired the item is within one year of the donation date, DeductionPro automatically uses the cost/adjusted basis as the deduction amount. This is required by the IRS.

If the cost/adjusted basis is less than the amount that you’ve entered for the fair market value and the date you acquired the item is more than one year before the donation date, DeductionPro uses the fair market value as the deduction amount.