Barrett Jackson is on fire

[ds1]

The Futureliner was donated to charity.

[ds1]

Prices are up, but why? I haven't seen a break in my economy yet. Where is the money coming from?

[Verne_Frantz]

Let me see if I understand this charity thing.........
Person A donates a car worth $100K at auction for charity. Tax write off for what it sells for.
Person B buys the car for $100K. Money goes to charity. Tax write off.
Person B puts the same car up for auction at the same event or next year. Proceeds to go to charity. Tax write off.
Person C:....well you get the picture.

Now, if I decide to sell my car for charity and I have my buddy make sure he's the high bidder, I get the tax write off for the sale price and he gets the tax write off for his payment to the charity. HE puts the car up again at auction for charity and I buy it back. We both get the tax deduction again. I get my car back and we both get a 2X $$ tax deduction for playing the game. Is that really how it works?

I guess if my buddy was sitting next to me on the front row and he bought my "car", I'd get up and give him a hug too!

Verne [img]<<GRAEMLIN_URL>>/hmmm.gif[/img] [img]<<GRAEMLIN_URL>>/rolleyes.gif[/img]

[the427king]

'Let me see if I understand this charity thing.........
Person A donates a car worth $100K at auction for charity. Tax write off for what it sells for.
Person B buys the car for $100K. Money goes to charity. Tax write off.
Person B puts the same car up for auction at the same event or next year. Proceeds to go to charity. Tax write off.
Person C:....well you get the picture.'

What you are missing is that when you buy a car where the proceeds are going to charity, you cannot write off the donation in full because you are receiving an asset for the price you paid&quot;,its not a true &quot;donation&quot; due to that. If you overpay for a car thats being auctioned off ,you may be able to write off the amount you paid over the market value of the car.

[Verne_Frantz]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: the427king</div><div class="ubbcode-body">
What you are missing is that when you buy a car where the proceeds are going to charity, you cannot write off the donation in full because you are receiving an asset for the price you paid&quot;,its not a true &quot;donation&quot; due to that. If you overpay for a car thats being auctioned off ,you may be able to write off the amount you paid over the market value of the car. </div></div>

So who is the big tax winner then, the seller?

Verne [img]<<GRAEMLIN_URL>>/dunno.gif[/img]

[bergy]

Marlin could probably comment here, but it's my understanding that the amount of the tax write off for the purchaser of the car is only the amount paid in excess of the value of merchandise received.

[Tommy Nolen]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: bergy</div><div class="ubbcode-body">Marlin could probably comment here, but it's my understanding that the amount of the tax write off for the purchaser of the car is only the amount paid in excess of the value of merchandise received.</div></div>

But who establishes the value of the goods received?

[markjohnson]

I'm having trouble finding the market value of GM Futureliners in my Kelly Blue Book.

[jimbo]

From B-J website.

&quot;The Ron Pratte Collection alone brought in over $40.44 million in vehicle and automobilia sales.

[bergy]

&quot;But who establishes the value of the goods received?&quot;

When you're dealing with the IRS - It's best to have a certified appraiser provide the value in writing. The IRS can still argue, but you will generally avoid penalties if you take the donation credit based on a certified, appraised value.