Barrett Jackson is on fire

[Verne_Frantz]

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.

Now, if I decide to sell my car for charity and I have my buddy make sure he's the high bidder, I get the tax write off for the sale price and he gets the tax write off for his payment to the charity. HE puts the car up again at auction for charity and I buy it back. We both get the tax deduction again. I get my car back and we both get a 2X $$ tax deduction for playing the game. Is that really how it works?

I guess if my buddy was sitting next to me on the front row and he bought my "car", I'd get up and give him a hug too!

Verne [img]<<GRAEMLIN_URL>>/hmmm.gif[/img] [img]<<GRAEMLIN_URL>>/rolleyes.gif[/img]

[bergy]

Marlin could probably comment here, but it's my understanding that the amount of the tax write off for the purchaser of the car is only the amount paid in excess of the value of merchandise received.

[Mr70]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cdn454LS6</div><div class="ubbcode-body">anybody know why Ron Pratte is selling his collection? </div></div>
This from another website from one close to him:
<span style="font-style: italic">Mr.Pratte built one of the finest collections of Cars,Airplanes and Automobilia the world has ever seen and is now moving on to other interests including building a private race track at the Dunes. He also wants to spend more time flying and seeing the world.</span>

[Tommy Nolen]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: bergy</div><div class="ubbcode-body">Marlin could probably comment here, but it's my understanding that the amount of the tax write off for the purchaser of the car is only the amount paid in excess of the value of merchandise received.</div></div>

But who establishes the value of the goods received?

[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&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.

[markjohnson]

I'm having trouble finding the market value of GM Futureliners in my Kelly Blue Book.

[jimbo]

From B-J website.

&quot;The Ron Pratte Collection alone brought in over $40.44 million in vehicle and automobilia sales.

[bergy]

&quot;But who establishes the value of the goods received?&quot;

When you're dealing with the IRS - It's best to have a certified appraiser provide the value in writing. The IRS can still argue, but you will generally avoid penalties if you take the donation credit based on a certified, appraised value.

[miket1]

[quote=bergy]Anybody know what happened with the red '70 LS6 Chevelle convertible @ $150k?????

I saw that too but don't know the story on it.

[1969L78Nova]

Would there not be a capital gsin/loss issue with all these cars sold?