rlsusenet[at]NOSPAMPUHLEEZschnapp.org <NoSuchPerson[at]bigfoot.com> wrote:

- quote -

Why? Can you show that the tickets sold elsewhere for $100?

- quote -

If you can show that (perhaps you know someone who bought
the tickets for $550 and got a letter from the charity
specifying the $450 contribution, who'll let you copy it; or
perhaps you have a copy of the newspaper ad that says so),
then the fair market value is $100.

Years ago, the Grateful Dead would play six shows at Madison
Square Garden. Tickets for 5 of them were $28. The sixth
was a benefit, and tickets cost $33, of which $5 went to
charity. That did not constitute a charitable contribution
for the buyer, because the fair market value of those
tickets was $33 (probably higher, but the GD artificially
held down ticket prices).

Seth

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Stuart Bronstein <spamtrap[at]lexregia.com> wrote:
- quote -

What does that have to do with this? Surely the charity
would provide a receipt if he made a direct donation like
this.

But the $550 check is totally unrelated to the event that
the tickets were given away for.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> wrote:
- quote -

He was responding to your point that you "should be in the
same position". Of course if you give $550 to a charity you
get a deduction. But that's totally separate from the
tickets you won.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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rlsusenet[at]NOSPAMPUHLEEZschnapp.org wrote:

- quote -

I forget the cut-off amount but for gifts over a certain
number (it was $250 the last time I checked) you have to
have a receipt from the charity of the gift isn't
deductible. Your cancelled check is not sufficient.

Stu

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Paul Thomas, CPA wrote:
- quote -

How much clearer can I get? I posed a hypothetical, wherein
I *DID* separately make a $550 donation to that charity. I
still can. I may yet even choose to do so.

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" wrote
- quote -

The huge problem here is that the charity didn't get
~anything~. It's very hard to convince a jury of your
non-peers that you get a charitable deduction when the
charity has no additional in it's coffers because of it.

How much did the charity get? $0

That's the amount of the charitable deduction.

--
Paul A. Thomas, CPA
Athens, Georgia

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Paul Thomas, CPA wrote:
- quote -

Note the hypothetical cases I originally stated:

A) If I hadn't won the tickets, and had paid $550 for them,
I would have a $450 charitable deduction (nothing added to
income, $450 is charitable deduction);

B) If I won the tickets AND MADE A $550 DONATION to that
charity, I believe I ought to be in the essentially the same
position, i.e., received something with FMV of $100 (added
to income) to be essentially netted against a charitable
deduction of $550.

Clearly, there are differences between (A) and (B),
especially if I were in an income bracket where deduction
limitations took effect -- I'm not quibbling about that.

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Herb Smith wrote:
- quote -

I meant the $600 floor for issuing a 1099.

- quote -

I meant my "net" position. If I made the donation, I would
then have $100 income and $550 deduction, netting out at a
$450 deduction.

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Paul Thomas, CPA wrote:
- quote -

That has been my experience as well. I serve on the
committee for a local charity event. We have occasionally
given out a few comp tickets to broadcast media, to help
promote the events.

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Herb Smith wrote:
- quote -

(balance schnipped, since this only pertains to last
statement above.)

Never ignore a 1099. If you can't make the radio station
see the error of it's ways in issuing it in the first place,
and for an incorrect amount in the second place, declare
the 100$ on form 1040 but also include a copy of the 1099
and your explanation as to the actual facts as responders
here have brought up.

ChEAr$,
Harlan Lunsford, EA n LA

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"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

If they won't do that (or if, as one person claimed, the
$550 is correct) refuse the tickets.

I have heard that there are warehouses in LA full of game
show prizes that people refused to take because the taxes
would cost more than the prizes were worth to them.

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"Barry Margolin" <barmar[at]alum.mit.edu> wrote

- quote -

FYI: Generally the charity gives these to the station to
comp out as prizes for the promotional aspect. The
charities I work with all do this for their events to some
degree. There isn't any cash given by the station to the
charity. Radio doesn't need to, and frankly can't afford
to, buy all it's prizes.

--
Paul A. Thomas, CPA
Athens, Georgia

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> wrote:

- quote -

Is the $225 charitable contribution optional? If not, I
think the radio station is correct. The FMV they quoted is
what it costs to attend similar shows on other nights, but
NOT the night that you'll be going. They're giving you
tickets that you would have had to pay $275 for, so from
your perspective you were given something worth $275.

- quote -

The radio station presumably paid $275 to the charity, or
maybe somewhat less because they bought in bulk, and THEY
get to take the charitable deduction.

For you to take the deduction, I think the contest would
have to be structured the following way: the radio station
buys the tickets for $50 (or maybe a wholesale price), and
the winner has to commit to donate $225 to the charity.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> wrote:

- quote -

the is no $600 threshold.

- quote -

Declare the $550 and make a $450 adjustment to your income.

Make copies of the 1099 and the tickets in case you are
asked for an explanation.

Dick

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> wrote:

- quote -

I would. You won admission for two for the event, which is
evidently worth $100, which is the amount of your prize
income.

--
Phil Marti
Clarksburg, MD

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<NoSuchPer...[at]bigfoot.com> wrote:

- quote -

If so, they would be wrong. The FMV for the two tickets is
only $100. What $600 "limit" are you talking about?

- quote -

That is correct. Enter $100 on Line 21 of your 1040 and
write "raffle prize" (or some such) on the dotted line. If
you get a 1099-MISC for $550, ignore it.

- quote -

True, assuming you itemize your deductions.

- quote -

Not exactly. If you win the tickets AND donate $550, then
you would have a $550 deduction. The tickets are irrelevant
to your donation deduction.

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" wrote:

- quote -

You don't have a charitable contribution at all. The
charity didn't get anything from you.

Talk to the radio station and see what they plan to issue any 1099 for. At
best, it's the stated value of the event, which is $50 per ticket.

--
Paul A. Thomas, CPA
Athens, Georgia

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I won a pair of tickets (from a radio station) to a
charitable event. These tickets were being sold for $275
each, and are marked as having a fair market value of $50.
Thus, if I were to purchase these tickets, I'd be eligible
for a $225 charitable deduction per ticket.

Since I won these tickets, the radio station will be sending
me a 1099 for $550 (plus other, previous winnings that get
me over the $600 limit).

Any opinions on whether I can dispute the $550 value? I say
that the fair market value ought to be $100.

If I had purchased the tickets, I'd get a $450 deduction.

If I win the tickets and donate $550, shouldn't I be in the
same position?

Any thoughts on this?

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