Pink Bat / Komen Foundation Tax Deduictible Receipts

[eGameUsed]

Hello! I am hoping someone that purchased a pink bat ffrom MLB Auctions can help.

Did anyone receive a tax deductible receipt for the portion that was deductible?

If not, has anyone else pursued finding the tax deductible amount for tax purposes?

Thanks in advance!

[XPFO]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

I never received anything. Keep me posted. What about the Jackie Robinson jerseys that were going to the Jackie Robinson Foundation, would those be partial right-offs as well?

[suave1477]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Chris to the best of my knowledge the receipt itself that you received with the bat is your deductable receipt. When you go to your accountant bring him the receipt you have from the auction. The bat was for charity so the whole receipt should be deductable.

Either way is not a huge amount your gonna get back in taxes just to give you an idea for example if the bat was say about $500 you would only get back around $30 - $50.

[DGRROSEN]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Chris, I am not a tax accountant, but I do not believe that the entire amount of the bat would be deductible since you did receive "something of value" for your contribution. You may have to show that you paid a price above "fair market value" and only deduct the difference. You probably should discuss this with a tax accountant. David

[suave1477]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

The Reality Is You Can Write The Whole Thing Off Trust Me The Irs Is Not Gonna Hunt You Down For $30

[RobSteinmetz]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Guys,

I'm not a tax advisor, but I've worked in the nonprofit sector for most of my adult life, and have known several people who have been called out by the IRS on large charity auction purchases. In this situation, I don't think any of your purchase would be deductible, as you made payment to MLB, not the Susan G. Komen Foundation. To be legally deductible, I'm fairly certain that your donation must be made to an entity with legally recognized nonprofit status (which MLB is not). I would highly recommend consulting a tax advisor on this if the purchase was significant. As Tony mentioned, you'll probably get away with deducting your entire purchase....however, I'm not sure I'd be comfortable rolling the dice. Hopefully there is an accountant or tax advisor on the forum who can also chime in...

Best,

[eGameUsed]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Thanks for the replies! I have always used the "designate a fair value and everything else is tax deductible" theory. That is how Cardinal's Care worked a few years ago when I bought items. They said a bat was worth $100. Same with the Sunshine Kids, they just noted every jerseys as $100 value.

Strange though, I received a call back from the Susan G. Komen foundation. They told me that none is a right off as I received something for my donation. I don't know if the woman knew what she was talking about though. She said that since a "portion" of the proceeds went to the Susan G. Komen foundaition (85% from what I recall), the entire amount was considered a non-deductible donation to acquire the item.

I know it won't make a big difference, but I acquire so much per year for my collection on a "charity" basis, it helps reduce my taxable income enough to make a difference, even if it is only a few hundred in savings per year.

Thanks,

[RobSteinmetz]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Here's some info that might come in handy since so many game used items seem to originate from charity auctions...

Valuation

Some items, such as those readily purchased at a retailer for fixed or suggested prices, are more easily valued than items such as art, memorabilia and meals with notable people. Both the donor and the charity must value the item.

The donor is responsible for valuing the item in order to substantiate his or her deduction, if any. The donor has the burden of proving to the IRS how he or she determined the fair market value of the donated item. If the donated item is worth more than $5,000, a written appraisal is required. Donors also are required to present a written acknowledgement or receipt from the charity for any non-cash contributions valued at more than $250. Sec. 170(f)(8); Reg. 1.170A-13(f).

In addition, the charity also has a responsibility to value the item, because it must provide this information to potential bidders, and more importantly, to the winning bidder for his or her deduction. Many charities include this information in their auction brochure or bidding list.

Taxation of Winning Bidders

Another common misconception is that any item won at a charity auction is fully deductible as a charitable contribution. If a bidder wins an item, he or she is allowed to deduct only the amount over the fair market value of the item. A contribution for which the donor receives something in return is called a quid pro quo contribution.

For example, Bidder places the winning bid on a dinner for two at a local restaurant. The fair market value of the dinner is $75. If Bidder pays $75 or less for the dinner, Bidder cannot deduct any of the bid payment as a charitable deduction.

Alternatively, Bidder wins and pays $125 for the same dinner. Bidder may deduct $50 of his or her payment as a charitable deduction because Bidder paid $125 for a dinner with a value of $75. The difference, $50, is the value of Bidder's gift to charity.

Charity Documentation

As mentioned above, the charity must provide documentation to the donor and to the winning bidder. The charity should provide the donor with a gift receipt that states the date and location of the charitable contribution, describes the donated item and states whether or not the donor received any goods or services in return. The charity is not required to provide the fair market value of the item in the gift receipt. As discussed above, it is the donor's responsibility to determine the fair market value of his or her gift.

[PK]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

The info Rob has posted above is 100% the deal.

Only the amount, if any, you paid above the fair market value of the item is deductable (according to the IRS). What else you decide to do try and deduct is entriely up to you and who does you taxes.

[eGameUsed]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Rob,

Great point regarding the recipient of the money. MLB is likely taking the tax write off on these. I had a similar instance a few years ago when I purchased some game worn jerseys from the Astros. The purchase was made through Tri-Star Productions, as they ran the auction for the Astros in Action foundation. It took some time, but I finally got the letter from the Astros.

Just so I have no worries, I will pass on making any deduction for the pink bats. I only had $1000 or so in them. It just doesn't seam worth it!

Thanks for the advice everyone!

Thanks,

[stlbats]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

The last bat I won on MLB auctions, came with the LOA from team as well as a separate letter clearly stating for income tax purposes and had the exact amount that was deductible. If I remember right the amount was less than the total purchase price, but only about $50 less. This has been about 2-3 yrs ago.

Thanks
Jason
stlbats@bellsouth.net

[allstarsplus]

Re: Pink Bat / Komen Foundation Tax Deduictible Receipts

Here's some info that might come in handy since so many game used items seem to originate from charity auctions...

Valuation

Some items, such as those readily purchased at a retailer for fixed or suggested prices, are more easily valued than items such as art, memorabilia and meals with notable people. Both the donor and the charity must value the item.

The donor is responsible for valuing the item in order to substantiate his or her deduction, if any. The donor has the burden of proving to the IRS how he or she determined the fair market value of the donated item. If the donated item is worth more than $5,000, a written appraisal is required. Donors also are required to present a written acknowledgement or receipt from the charity for any non-cash contributions valued at more than $250. Sec. 170(f)(8); Reg. 1.170A-13(f).

In addition, the charity also has a responsibility to value the item, because it must provide this information to potential bidders, and more importantly, to the winning bidder for his or her deduction. Many charities include this information in their auction brochure or bidding list.

Taxation of Winning Bidders

Another common misconception is that any item won at a charity auction is fully deductible as a charitable contribution. If a bidder wins an item, he or she is allowed to deduct only the amount over the fair market value of the item. A contribution for which the donor receives something in return is called a quid pro quo contribution.

For example, Bidder places the winning bid on a dinner for two at a local restaurant. The fair market value of the dinner is $75. If Bidder pays $75 or less for the dinner, Bidder cannot deduct any of the bid payment as a charitable deduction.

Alternatively, Bidder wins and pays $125 for the same dinner. Bidder may deduct $50 of his or her payment as a charitable deduction because Bidder paid $125 for a dinner with a value of $75. The difference, $50, is the value of Bidder's gift to charity.

Charity Documentation

As mentioned above, the charity must provide documentation to the donor and to the winning bidder. The charity should provide the donor with a gift receipt that states the date and location of the charitable contribution, describes the donated item and states whether or not the donor received any goods or services in return. The charity is not required to provide the fair market value of the item in the gift receipt. As discussed above, it is the donor's responsibility to determine the fair market value of his or her gift.

Rob - Very strong points as that is a common mistake that someone will buy a jersey for $1,000 at a charitable auction and write off the entire $1,000 which is not correct.

I am a CPA albeit my license is inactive so don't take my comments as tax advice, but I find it a shame that those pink bats didn't come with a charitable letter spelling out the Fair Market Value of the bats for tax purposes.

Fair Market Value is extremely subjective as it would be the price that bat would fetch in a sale if it was not a charitable item. Well, putting a number on a bat used for 1 game can't be readily achievable so you usually rely on the Charity to disclose the FMV amount.

When I went to my last Super Bowl, I attended several parties and for instance the Taste of the NFL Dinner clearly stated $725 of my $775 dinner was tax deductible as a Charitable Donation.

I would email MLB or email the Susan B. Komen Foundation and see if you can get a letter or consult your CPA.

Andrew

[Fnazxc0114]

pink mothers day bats

do you guys know if you can write these off on your taxes. if so it would help me out next year.

[PK]

Re: pink mothers day bats

Only the amount above and beyond the value of the bat that you paid can be claimed, which if I remember correctly from last year was about $200-$250. So only anything above at amount can technically be claimed. Now if you do your own taxes and want to be nervous for 7 years.....

[suave1477]

Re: pink mothers day bats

You wont be nervous for 7 years you can write it off its not that big of a deal.
Your just writing off $250 which most people do not realize when you write something off you dont get the whoel thing back you only get a small percentage.
So technically if you wrote off $250 you would be getting back like $15 to $25.

I am pretty sure the IRS is not gonna hunt you down for $25 lol lol