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Purely curiosity, but surely that can't be how it works? It kind of makes sense at face value, but seems like a monster loophole[1], too -- I'd be curious if a
by adanto6840 9y ago
Purely curiosity, but surely that can't be how it works? It kind of makes sense at face value, but seems like a monster loophole[1], too -- I'd be curious if anyone could point me towards more reading on the topic.
1 - Bob wants tax deductions. Bob decides to sell pencils for $50k each. Bob discounts them to $0 for non-profits. Can Bob deduct $50k per pencil, for each sold to a non-profit?? Maybe Bob can only deduct his cost, or something?
- wlesieutre 9y agoIRS lets you claim "fair market value" on donations. https://www.irs.gov/publications/p561#idm140501112136960 https://www.irs.gov/publications/p561#idm140501112136960
- oddevan 9y agoFrom what I remember of working with a non-profit, there are limits to "gift-in-kind" donations. Apple sells the license at $99, but they can probably only claim $50 or so since that's what the actual "cost" of an iOS developer is. So in your example, yes, Bob could only deduct the cost of the pencils, not his inflated "value".