5 Mar
2001
5 Mar
'01
1:34 a.m.
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!!!