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| | {{ForumReplyPost|UserID=CPAdavid|Date=16 February 2008|Text=Jdugan, an excellent point. The same question occurred to me, but then I assumed "co-founder" was really what cporter meant to say. Often when I have 1023 clients prepare a narrative of the proposed activities of their organization, they constantly refer to the organization as "theirs" and think of themselves as owners. Just one of the reasons I recommend that nonprofits get professional help with Fed tax compliance matters.}} | | {{ForumReplyPost|UserID=CPAdavid|Date=16 February 2008|Text=Jdugan, an excellent point. The same question occurred to me, but then I assumed "co-founder" was really what cporter meant to say. Often when I have 1023 clients prepare a narrative of the proposed activities of their organization, they constantly refer to the organization as "theirs" and think of themselves as owners. Just one of the reasons I recommend that nonprofits get professional help with Fed tax compliance matters.}} |
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| | + | {{ForumReplyPost|UserID=Cporter1|Date=16 February 2008|Text=Thank you. "Co-founder" is obviously a better term.}} |
Current revision
Discussion Forum Index --> Advanced Tax Questions --> Lease payments as charitable contributions
Discussion Forum Index --> Tax Questions --> Lease payments as charitable contributions
Cporter1 (talk|edits) said:
| 15 February 2008
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| One of my clients was the co-owner of a non-profit organization. She quit near the end of 2006 but could not get out of her obligation to pay a $250 lease payment on a copier. After threats of a lawsuit, she finally purchased the copier for $6000. She wants to know if she can deduct the cost as a charitable contribution. The problem is, the copier is still in her house and is not currently being used by the non-profit organization. I advised her to donate the copier to another organization and receive a written statement and appraisal but she still wants to know what she can do with the lease payments. What do you guys think?
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CPAdavid (talk|edits) said:
| 15 February 2008
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| A contribution occurs when someone donates money or property and receives NOTHING in return. Your client bought a copier for $6,000. Hopefully she did not pay less than FMV for it or there could be a private benefit issue. I think your advice to the client to donate the copier to another organization is right on the money. Then she would be in a position to take a charitable deduction.
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Jdugancpa (talk|edits) said:
| 16 February 2008
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| Please explain how one becomes a "co-owner of a non-profit organization."
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CPAdavid (talk|edits) said:
| 16 February 2008
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| Jdugan, an excellent point. The same question occurred to me, but then I assumed "co-founder" was really what cporter meant to say. Often when I have 1023 clients prepare a narrative of the proposed activities of their organization, they constantly refer to the organization as "theirs" and think of themselves as owners. Just one of the reasons I recommend that nonprofits get professional help with Fed tax compliance matters.
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Cporter1 (talk|edits) said:
| 16 February 2008
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| Thank you. "Co-founder" is obviously a better term.
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