Us vs. Museums

From: Fred Cisin <cisin_at_xenosoft.com>
Date: Mon Mar 5 11:31:15 2001

Another nit to pick:
If you buy something, and then turn around and donate it, the "value" of
the donation is the amount that you paid for it.

If, however, you buy something and sit on it, ... Then the value is its
"fair market value". I'm not sure, but I think that the requisite time
interval is a year.

--
Grumpy Ol' Fred   
On Mon, 5 Mar 2001, Michael Passer wrote:
> Wouldn't the $90,000 profit realized (the $100,000 donation value
> minus the $10,000 price) then be taxable income in this example?
> 
> > 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!!!

Received on Mon Mar 05 2001 - 11:31:15 GMT