Discussion:1.00 sale and true valuation
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Discussion Forum Index --> Advanced Tax Questions --> 1.00 sale and true valuation
Discussion Forum Index --> Tax Questions --> 1.00 sale and true valuation
| 2 September 2008 | |
| I know that last summer sometime the IRS sent out a notice clarifiying 1.00 sales or leases as...I think the term was...discounted sales and that the correct price or FMV of the lease or sale had to be recorded by the purchaser or receiver as the FMV.
I am in the middle of an ongoing discussion with a Non-Profit that I do the 990 form for. They are STILL trying to convince me that when they are gifted "conservation easement rights" on land that they need only record the 1.00 value. I have, and will continue to, book the FMV of the conservation easement on their restricted assets list as the true FMV at the time of gift or sale to the non-profit. If the rights are sold to the org for only 1.00 or for less than the FMV, I consider it a "discounted sale" and book the balance as an "intangible asset donation". If anyone has a copy of that IRS notice clarifying this 1.00 discounted lease or sale information I would greatly appreciate it so that I can present yet another piece of IRS information that says that there IS value in the donation/gift/purchase beyond just the 1.00. Thank you advance and any help is greatly appreciated. Cbarstow | |
