🚀 go-pugleaf

In article <1992Aug5.192136.14262@liveware.com> info@bang.org writes:
>After Prof. Crandall speaks we will be auctioning off Serial #1 of
>PasteUp, which was graciously donated by Rightbrain Software, and
>Serial #1 of SBook, which was graciously donated by Simson Garfinkel
>and Associates. There may also be another very special item for
>auction, so bring your checkbooks, and remember that purchases are
>tax-deductable.

  I thought it was important to note something that is misleading
  in this post.  I would like to know where the idea came up that
  purchases made at auctions held by the user groups are tax deductible? 

  First of all, have any of the user groups qualified under 501.c
  regulations of the IRS as charitable organizations?  I highly doubt
  it (although I might be wrong).  If not, NONE of these things could
  even qualify as tax-deductible.         

  Second, even if they did, generally the acquisition of merchandise
  through charitable auctions is not tax-deductible to the extent that
  the amount spent is up to the fair-market value of the merchandise.
  That is, if Paste-up sells for $295 and you bought it at auction for
  $195, the $195 is NOT tax deductible at all.  The $295 might be
  deductible to RightBrain since THEY donated the value of the 
  merchandise to the user group.  But since the purchaser is getting
  value for his money rather than making a true donation, he can't get
  a deduction.  If you spent $395 for a $295 product, you might be able
  to deduct $100 (since you "over-spent" so to speak, and contributed
  an additional $100 to the user group), this of course still predicated
  on the issue of whether the user group is even a qualified charitable
  organization.  

  You might be able to get away with it on your tax return for a while,
  but if you got audited and they seriously checked this stuff out, you
  would probably lose the deduction.

  Just trying to keep people from getting screwed by the IRS.

  Jon Rosen