The only caveat is that the museum cannot set a value on the donation.
The donor does that. IRS regulations.
On Mon, 5 Mar 2001, Steve Robertson wrote:
> > >
> > > Well, with a few caveats, it should be your marginal
> >tax rate (your
> > > 'bracket') times the valuation of the donation. For
> >example, your $1000
> > > donation should bring you a $280 tax deduction if you
> >are in the 28%
> > > bracket.
> > > - don
>
> The "value" of a item donated to a museum is not mecessarily the market
> value. In many cases the numbers are vastly inflated in order to entice
> additional donations.
>
> Let's assume you are in a high tax bracket and looking for a little relief.
> You find a bargain on a very rare computer and pay $10,000 for it. You haul
> it down to the local technology museum, who is anxious to have the donation,
> and agree to give them the item. In exchange you ask them to provide a
> receipt for $100,000 for the machine. Since it's not costing them anything
> and the addition to the museum will entice additional visitors, they gladly
> agree to provide the receipt.
>
> You claim a $100,000 donation on your tax return and pay taxes on that much
> less of your income. That would probably be in the 30% - 40% range. Or a
> savings of $30,000 to $40,000!!!
>
> So... for your $10,000 investment you:
>
> 1.) Look like a real upstanding citizen for supporting the local museum.
>
> 2.) Get your name on a plaque in the museum (free advertising).
>
> 3.) Save $30,000 to $40,000 on your taxes.
>
> The museum gets a nice addition to it's collection at no cost.
>
> Next time you go to a museum, look around. Most of the really valuable
> things were not donated because someone felt particularily generous. They
> were donated because the owners got huge tax breaks by donating them. The
> whole thing is a SCAM!
>
> _________________________________________________________________
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>
>
M. K. Peirce
Rhode Island Computer Museum, Inc.
Shady Lea, Rhode Island
"Casta est quam nemo rogavit."
- Ovid
Received on Mon Mar 05 2001 - 08:35:42 GMT