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Old 12-13-2007, 01:02 PM
 
Location: LEAVING CD
22,951 posts, read 23,213,925 times
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I am thinking of donating a couple of real decent TV's to our school or church that are worth about $1500 or I can sell them for about $500 total. I'll most likely have a $700-$800 tax liability this year so I'm wondering which will benefit me tax wise. I'd prefer to donate them as they can use them but need to soak up the tax junk as much as possible.
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Old 12-13-2007, 01:22 PM
 
Location: Pocono Mts.
9,483 posts, read 11,090,173 times
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Go by route of donation. If you sell the TV's and make money off them, you then owe tax, and you want to eliminate tax. You can also put together some bags of clothes you no longer wear, and the same with household appliances and such that you don't use. Donate them to the Salvation Army. All I do here, is describe & value the bag of items, and ask the lady to sign. You are lucky to have only a tax liability of that amount, is it your only tax due, or did you pay quarterly and that is what is still owed? What business are you in, may I ask? You may have write-offs that are going un-thought of - but then I am assuming you are self-employed.
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Old 12-13-2007, 01:36 PM
 
1,640 posts, read 4,288,408 times
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Quote:
Originally Posted by jimj View Post
I am thinking of donating a couple of real decent TV's to our school or church that are worth about $1500 or I can sell them for about $500 total. I'll most likely have a $700-$800 tax liability this year so I'm wondering which will benefit me tax wise. I'd prefer to donate them as they can use them but need to soak up the tax junk as much as possible.
You will be able to deduct the fair market value of the TVs if you itemize. So, consider the TVs are worth 1,500 and you are in the 30% bracket, your tax savings will be $450.00. Selling the TVs makes more sense from a financial standpoint but it won't make you feel all warm and fuzzy inside.

Remember the IRS is satan, so you might have a hard time justifying the TVs value at $1,500 if you could only sell them for $500.00.
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Old 12-13-2007, 01:52 PM
 
Location: LEAVING CD
22,951 posts, read 23,213,925 times
Reputation: 15535
Quote:
Originally Posted by truckingbronco View Post
You will be able to deduct the fair market value of the TVs if you itemize. So, consider the TVs are worth 1,500 and you are in the 30% bracket, your tax savings will be $450.00. Selling the TVs makes more sense from a financial standpoint but it won't make you feel all warm and fuzzy inside.

Remember the IRS is satan, so you might have a hard time justifying the TVs value at $1,500 if you could only sell them for $500.00.
They are still being sold so that's where I got the $1500. The problem is they are not plasma or lcd so on the resale market they are not as desireable so wouldn't fetch that here. If I can reduce my tax liability buy $450-$500 AND we get the warm and fuzzies well that's just great as well. I'd rather donate and get about the same as selling since I'm going to replace them with plasma and will have to pay out the $500 either way, I'd just rather give it to someone other than the great satan~
If it would be better cash wise to sell then that's what I'll have to do...
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Old 12-13-2007, 02:59 PM
 
1,640 posts, read 4,288,408 times
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You're going to benefit about the same either way, so might as well do a good deed.
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Old 12-13-2007, 04:25 PM
 
Location: Southwest Missouri
1,921 posts, read 5,720,499 times
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Quote:
Originally Posted by poconoproud View Post
If you sell the TV's and make money off them, you then owe tax, and you want to eliminate tax.
He's not going to "make money" selling TV's that he bought new. He's only going to recoup part of the value that he paid initially (and he paid tax on the TV's when new unless he lives in a state that doesn't charge sales tax), so he won't owe any tax.

If he donates the TV's, he will be able to write off their current fair-market-value on his tax returns. He just needs to make sure that he gets a written receipt from whichever organization he donates to.
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Old 12-13-2007, 07:51 PM
 
Location: Pocono Mts.
9,483 posts, read 11,090,173 times
Reputation: 11421
Quote:
Originally Posted by 8 SNAKE View Post
He's not going to "make money" selling TV's that he bought new. He's only going to recoup part of the value that he paid initially (and he paid tax on the TV's when new unless he lives in a state that doesn't charge sales tax), so he won't owe any tax.

If he donates the TV's, he will be able to write off their current fair-market-value on his tax returns. He just needs to make sure that he gets a written receipt from whichever organization he donates to.

yup, don't know where my head is. Thanx Snake
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