Barrett Jackson is on fire

[the427king]

'Let me see if I understand this charity thing.........
Person A donates a car worth $100K at auction for charity. Tax write off for what it sells for.
Person B buys the car for $100K. Money goes to charity. Tax write off.
Person B puts the same car up for auction at the same event or next year. Proceeds to go to charity. Tax write off.
Person C:....well you get the picture.'

What you are missing is that when you buy a car where the proceeds are going to charity, you cannot write off the donation in full because you are receiving an asset for the price you paid",its not a true "donation" due to that. If you overpay for a car thats being auctioned off ,you may be able to write off the amount you paid over the market value of the car.

[Verne_Frantz]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: the427king</div><div class="ubbcode-body">
What you are missing is that when you buy a car where the proceeds are going to charity, you cannot write off the donation in full because you are receiving an asset for the price you paid&quot;,its not a true &quot;donation&quot; due to that. If you overpay for a car thats being auctioned off ,you may be able to write off the amount you paid over the market value of the car. </div></div>

So who is the big tax winner then, the seller?

Verne [img]<<GRAEMLIN_URL>>/dunno.gif[/img]