Lorri on fri 9 jun 00
Just pondering the discussion on donating pottery to charity and determining
the fair value of the pot vs. what the IRS considered to be fair value and
wondered about what must be a common situation. What if a person's pottery
were to be donated to an organization for the purposes of the organization
to have an auction to raise money. Could the person that donated the
pottery deduct the value of the auction price? Would that not then be
considered fair value? It was obviously the worth of the item to the person
who bid that price at the auction. All that would then need to be done is
the organization that accepted the pottery send the person donating the item
a receipt stating how was received which could be deducted from their taxes.
I know this seems obviously simple so there must be something that I am
missing. Anyone that can answer please fill me in.
Lorri
Lenexa, KS
NeilBerkowitz on sat 10 jun 00
The obligation of establishing the fair market price rests solely with the
donor, who may do so through an appraisal. The organization receiving the
in-kind donation faces a stiff penalty if they refer in any way to a value
of the gift. Form 8283 is the form the donor should use. You can view or
download it at the IRS website: http://www.irs.gov
In the case of gifts with a value of $5000 and up, there are additional
requirements if the organization then sells the gift within two years. The
details are explained on the intrustions for form 8282.
Although it has been three years since I was a developent director, I have
checked the IRS materials and the information above is still current.
Neil Berkowitz
----- Original Message -----
From: "Lorri"
To:
Sent: Friday, June 09, 2000 2:06 PM
Subject: Donations & Fair Value
> Just pondering the discussion on donating pottery to charity and
determining
> the fair value of the pot vs. what the IRS considered to be fair value and
> wondered about what must be a common situation. What if a person's
pottery
> were to be donated to an organization for the purposes of the organization
> to have an auction to raise money. Could the person that donated the
> pottery deduct the value of the auction price? Would that not then be
> considered fair value? It was obviously the worth of the item to the
person
> who bid that price at the auction. All that would then need to be done is
> the organization that accepted the pottery send the person donating the
item
> a receipt stating how was received which could be deducted from their
taxes.
> I know this seems obviously simple so there must be something that I am
> missing. Anyone that can answer please fill me in.
>
> Lorri
> Lenexa, KS
>
>
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ZALT@AOL.COM on sun 11 jun 00
Lorie:
I believe that the Vermont Public Television does just this. They accept the
artists gift of a peice of art then auction it off. The Television station
keeps the money and they in turn give a receipt to the artist equal to the
amount the work raised during the auction.
I am Canadian and we are allowed to give work and use the receipts from the
auction sale. I am sure it is the same for the US artists.
Why not check with the Public TV station near you.
Terrance Frank Lazaroff
St Hubert, Quebec, Canada
Zalt's Web Page
Olivia T. Cavy on mon 12 jun 00
I like it when a charity tells the artist-donor who bought their work
because it gives the artist another chance to turn that buyer into a
customer, if they so choose. At the least, the customer might want to
receive notices of that artist's exhibits and open houses.
Bonnie
On Sun, 11 Jun 2000 20:30:05 EDT ZALT@AOL.COM writes:
> Lorie:
>
> I believe that the Vermont Public Television does just this. They
> accept the
> artists gift of a peice of art then auction it off. The Television
> station
> keeps the money and they in turn give a receipt to the artist equal
> to the
> amount the work raised during the auction.
>
> I am Canadian and we are allowed to give work and use the receipts
> from the
> auction sale. I am sure it is the same for the US artists.
>
> Why not check with the Public TV station near you.
> Terrance Frank Lazaroff
> St Hubert, Quebec, Canada
> Zalt's Web Page
>
>
_________________________________________________________________________
_____
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your
> subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
Bonnie D. Hellman, Pittsburgh, PA
PA work email: oliviatcavy@juno.com
PA home email: mou10man@sgi.net (that's the number 10 in the middle of
the letters)
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Olivia T. Cavy on mon 12 jun 00
Lorri,
You'd like to consider the auction price to be the fair market value when
the auction price is high, but what would you do IF the auction price is
lower than a price you could have gotten if you'd sold it yourself? And
this does happen. It also happens the other way, that sometimes people
will pay more money in a charity auction because the charity is the
beneficiary.
Personally, I'd prefer to use comparative prices of similar pots to be an
indication of FMV. This is normally what the IRS accepts. Sometimes this
is hard to find, so you go with your best guess of FMV.
Bonnie
Bonnie D. Hellman, CPA in PA & CO
PA work email: oliviatcavy@juno.com
PA home email: mou10man@sgi.net (that's the number 10 in the middle of
the letters)
On Fri, 9 Jun 2000 16:06:02 -0500 Lorri writes:
> Just pondering the discussion on donating pottery to charity and
> determining
> the fair value of the pot vs. what the IRS considered to be fair
> value and
> wondered about what must be a common situation. What if a person's
> pottery
> were to be donated to an organization for the purposes of the
> organization
> to have an auction to raise money. Could the person that donated
> the
> pottery deduct the value of the auction price? Would that not then
> be
> considered fair value? It was obviously the worth of the item to
> the person
> who bid that price at the auction. All that would then need to be
> done is
> the organization that accepted the pottery send the person donating
> the item
> a receipt stating how was received which could be deducted from
> their taxes.
> I know this seems obviously simple so there must be something that I
> am
> missing. Anyone that can answer please fill me in.
>
> Lorri
> Lenexa, KS
>
>
_________________________________________________________________________
_____
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your
> subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
> melpots@pclink.com.
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Lorri on mon 12 jun 00
Bonnie,
> You'd like to consider the auction price to be the fair market value when
> the auction price is high, but what would you do IF the auction price is
> lower than a price you could have gotten if you'd sold it yourself? And
> this does happen. It also happens the other way, that sometimes people
> will pay more money in a charity auction because the charity is the
> beneficiary.
I agree it'd make more sense to use similar pots as a determination of the
FMV.
If, however, you don't have back-up showing what monetary value you
received for similar pots, I'm saying I'd rather receive the lower price
than
nothing or than just the cost of the clay and glaze! And you're right, some
folks will
pay more because it is for a charitable cause, but if you have the receipt,
I'd
like to think that the IRS would accept that. May according to the IRS book
they won't; I've not bothered to read it. Ceramics books are immensely more
interesting.
Lorri
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