Discussion:Pacemaker donation
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Discussion Forum Index --> Tax Questions --> Pacemaker donation
| 12 February 2007 | |
| I wonder if any other preparers have encountered this issue. Taxpayer wants to donate the pacemaker taken from their deceased father and claim a non cash contribution of $ 4,500.
The charity is a qualified organization which donates these things to non US residents. The problem is that a US law prevents US MDs from installing anything other than a new pacemaker into a person. Foreign laws are apparently less restrictive. | |
| 12 February 2007 | |
| I see no problem with this donation as long as the organization is a 501(c)(3) organization. Check Publication 78 to see if they are listed. | |
Death&Taxes (talk|edits) said: | 12 February 2007 |
| How did they arrived at the value? When my wife passed 5 plus years ago, the pacemaker had to be removed for cremation. I never learned what happened to it and am curious. | |
| 12 February 2007 | |
| I assume the taxpayer received the pacemaker as a devise under a will or as an heir. Otherwise, they don't have anything to donate. I wonder if it was listed on any probate inventory? | |
Death&Taxes (talk|edits) said: | 12 February 2007 |
| Where's Dennis when we really need him? You raise a very good point, GLM. | |
| February 13, 2007 | |
| So, even if my insurance company paid for my pacemaker, my son can donate it to a 501(c)(3) organization after I die and deduct the FMV? I wonder how much he'll have to pay to have it removed from me.... Might not be worth it, unless he cuts it out himself. | |
Corptaxhelp (talk|edits) said: | February 13, 2007 |
| Neil, for your client's purposes, the pacemaker is no different than a wheelchair or other medical device. That it happened to be inside instead of outside makes no difference. | |
| 13 February 2007 | |
| Most wills have personal property clauses and I see no reason why a pacemaker would not be classified as such. It has a value and, post death, belongs to a benefciary. | |
| 13 February 2007 | |
| All of you have raised some very interesting points and I thank all of you. The only thing that gave me concern was the age old "violation of public policy" rule. So, if a US statute says an
MD can not install a used pacemaker, are we not in some small way gaining benefit from an act that is prohibited by law? Example, trucking company that improperly deducts fines for deliberate overloading of trucks. Heaven only knows where they got the value of $ 4,500 since one could argue that it has 0 value since its reuse is so strictly prohibited. | |
Death&Taxes (talk|edits) said: | 13 February 2007 |
| I would hope that the beneficiary is an attorney who can practice before Tax Court in the case that IRS questions the valuation, else the tax savings will be lost to litigation and representation fees. | |
Corptaxhelp (talk|edits) said: | February 13, 2007 |
| Here is a recentish story from the Chicago Sun-Times on the subject of pacemaker donations...
http://www.suntimes.com/lifestyles/health/150395,CST-NWS-pace27.article The doctor makes a good point... "We take out people's organs and reuse them," said Dr. Bradley Knight, a University of Chicago specialist in heart rhythm problems. "I don't see why we can't do it with hardware."' Of note, it seems the value new is in the $4,000 to $5,000 range. I'd make sure the proper value is ascribed. Other than that, I don't have any concerns. The pacemaker is no different than a wheelchair. Would you be concerned that your client's wheelchair was being sent overseas after its donation? Let’s say I donate a toy that was recalled by the manufacturer to a charity that sends the toy overseas. Would you disallow the deductibility of the donation because the toy was not marketable in the United States? I wouldn’t. | |
| 13 February 2007 | |
| My point above is "who made the donation?" If it was included as a directive in the decedent's will, the kids don't get the tax deduction. If it passed to the kids, then a deduction for FMV. I'd be concerned about using $4,500....sounds a bit close to the $5K limit before written appraisal requirement. | |
| 13 February 2007 | |
| DT, I was told by the cremation company that they put the pacemakers (whole) in the urn of ashes. They wanted us to know so we wouldn't be freaked out if we were sprinkling ashes and there goes dad's pacemaker. | |
Death&Taxes (talk|edits) said: | 13 February 2007 |
| Kevin, the undertaker who arranged my daughter's cremation told wife and I not to open anything. He said the idea of spreading ashes often led to unpleasant circumstances. The mortician in NY who handled my wife was in too big a hurry to get his check to explain anything, except that he was glad to know there was a pacemaker.
There is a lovely discussion of ashes in this piece, which a feature writer for the Wall Street Journal highly praised: http://www.writing.com/main/view_item/item_id/438419 | |
