Musings about reselling items bought from charity auctions... - Page 4 - Mothering Forums

Forum Jump: 
Reply
 
Thread Tools
#91 of 100 Old 07-28-2005, 06:08 PM
 
kath's Avatar
 
Join Date: Aug 2004
Posts: 614
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Sustainer
Even if this were the case, are you sure all you would have to subtract is the retail price? Even if the market value is significantly higher than the retail price? (In other words, if you had bought it in a non-charity auction, it still would have cost much more than the retail price. Wouldn't *this* be the amount you would have to estimate and subtract?)
it depends on the tax rules for the item. for charity auction items, you have to take the value of the good out of the amount you can deduct. now, what is the value of the goods? that is the gray area of the irs tax code (i'm not up to date on foreign tax codes so...). there are always going to be rough estimates for these things because as has been stated, you can't buy a mm soaker with a luxe diaper, lets say, in general. only charity auctions. so the retail might be $55 for the soaker and $40 for the diaper or $95 for the deduction but since it is a set, it's market value might be say $150. so if you paid $300 for it in the auction, you should really only get a write off of $150. that said, many people will use a write off of $205 (using just $95 as the basis or value of the goods), since it is easier to prove to the irs. also many people do not even take out the value of the items and just write off the full $300. again, ethics and taxes, a strange mix.

my opinion is always supply and demand. you can ask anything and someone can pay you anything. i'm okay with it.

now personally, i wouldn't ask for my total donation or anywhere near it (probably just ask for retail on the items (so for a mm soaker just $55 and the luxe diaper $40 in my above example or maybe $150 since it is a matching set but even that, i'm not sure), since i do take the tax write offs for chairty auction goods. my reasoning is that i would be "double dipping" if sold the items for my donation and took the tax write off. again, my choice though. if i never took the write off on their taxes, different story since no double dipping. again, just my 2 cents and my opinion.
kath is offline  
#92 of 100 Old 07-28-2005, 06:14 PM
 
kath's Avatar
 
Join Date: Aug 2004
Posts: 614
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mama2kyla
Also... to deduct charity items from your taxes you have to be donating to a non profit organization directly ( i believe) and have a receipt from such organization.... since you are buying from the WAHM and the WAHM is donating it would seem she would be the one getting the receipt/deducting thigns from their taxes if that were possible.
oh yes, this is true. i was assuming the faa auctions where you donated directly to the non-profit and had confirmation of it. most charity auctions are set up that way (at least in the non diapering community. not sure how the diapering community does it since i've only bought a purse in a ffa auction.).
kath is offline  
#93 of 100 Old 07-28-2005, 09:40 PM
 
DreamingMama's Avatar
 
Join Date: Apr 2003
Location: Canada
Posts: 5,669
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Sustainer
Charity might be *one* reason for bidding to go higher, but it is not the only reason. Another reason is that it's a one-of-a-kind piece of hyena fluff whose market value is well above retail.
Very True.
I was just stating how I do things not pushing that on others. I cannot always participate in auctions because the one of a kind value is higher then I can afford.
DreamingMama is offline  
#94 of 100 Old 07-28-2005, 11:51 PM
 
threeforme2005's Avatar
 
Join Date: Sep 2004
Location: CO
Posts: 1,972
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by radish
Plus, taking hyena fluff to ebay can result in a worse reputation - (IIRC a certain BBB soaker seling for $300 was a huge deal and people wondered why the seller didnt just sell on the TP.) Sort of a damed if you do, damned if you dont situation.

So, I got an ebay FCB for $45, sold it on the TP for 440 (?), is that questionable? The WAHM gets her money, I am not making a profit but I hate to think any MDC mamas think my behavior is shady. I try to be more than reasonable with my TP sales and I dont want ppl to think otherwise.
This is exactly what I am saying. I've read countless posts on the whole reputation topic of selling diapers. I've seen mamas berated for buying an item only to place it on ebay to make a profit (remember a certain wool cover...ahem?) So I'm just going on what I've read about how MDC works. The bolded quote above says it all. Lots of mixed messages on here.
threeforme2005 is offline  
#95 of 100 Old 07-29-2005, 12:09 AM
 
luv2*b*mom's Avatar
 
Join Date: Mar 2004
Location: Beautiful Bliss
Posts: 1,075
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Nada
If people are willing to pay, I don't see a problem with it. If you are bothered by the price being asked, don't buy it. I have GLADLY paid wayyy more than retail for items (one was a charity set) that I truly really wanted.

Nada

ITA! There is always gonna be someone doing something that someone else doesnt agree with. If thats the case, dont buy it.
luv2*b*mom is offline  
#96 of 100 Old 07-29-2005, 12:53 AM
 
wildthing's Avatar
 
Join Date: Feb 2003
Location: Where the wild things are.....
Posts: 2,011
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Just a little FYI about some of the charity auctions.....the WAHM does not always get the retail price for the item they put up. For a 100% auction, the entire amount is donated to the charity. Baskets also are typically completely donated by the WAHMs involved. Often if it is a percentage, the WAHM will still donate a larger portion of anything above retail (often 100% of anything above retail). Nothing else to add, just thought I'd mention it.
wildthing is offline  
#97 of 100 Old 07-29-2005, 02:35 AM
 
sovereignqueen's Avatar
 
Join Date: Aug 2004
Location: Sunny California
Posts: 1,499
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Just wanted to chime in my 2 cents from working at 501 (c) 3s

Quote:
Donors who purchase items at a charity auction may claim a charitable contribution deduction for the excess of the purchase price paid for an item over its fair market value. The donor must be able to show, however, that he or she knew that the value of the item was less than the amount paid.
(from the IRS website)

you still have to deduct the fair market value from the price you paid before you claim it on your taxes, even if the item is donated.

The whole topic of acutions can be quite sticky. One one side, its now your personal property, but on the other hand its a matter of personal ethics.

If you won a Vera Wang one-of-dress at a chairity auction for the Philharmonic, at a much above the retail price you'd pay if you atually managed to obtain a custom spot with her, and then wanted to sell it after you'd worn it a few times, should you sell it at a high price simply b/c you paid alot for it?

You could. Alls fair in a market driven economy. It is your property. And there just might be someone willing to pay that much. I personally wouldn't. I might ask a high price b/c of the rarity or uniqueness of the item, but I would keep it on par with what other similarly unique items were going for. KWIM?

Whoever said it was a slipey slope is absolutly right. Hmmmm....I think we need a slipery slope smily.
sovereignqueen is offline  
#98 of 100 Old 07-29-2005, 03:37 AM
 
Smullarkey's Avatar
 
Join Date: Mar 2005
Location: Phoenix metro area
Posts: 161
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I would have to agree! And if you get your donation back, is it ethical to still claim it as a tax write-off? I've only won one charity auction but I paid over $120 for a wool soaker. The only reason I paid that much is because every year we donate $100 to a breast cancer research fund so I justified it as my charitable giving for the year! IF I sell that soaker used, I can't imagine asking more than $20-30 for it! Of course I'll never sell it! :LOL
Smullarkey is offline  
#99 of 100 Old 07-29-2005, 03:45 AM
 
sovereignqueen's Avatar
 
Join Date: Aug 2004
Location: Sunny California
Posts: 1,499
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Smullarkey
I would have to agree! And if you get your donation back, is it ethical to still claim it as a tax write-off?
Well if you sell it, its technically income, right? So I guess if you claim both, it would be ethical. Not sure, this is just my guess and I could be wrong...as no one ever resold anything (to my knowledge) that the non-profit I worked for auctioned off...I am not an acocuntant, nor to I play one on TV :LOL
sovereignqueen is offline  
#100 of 100 Old 07-29-2005, 04:12 PM
 
Sustainer's Avatar
 
Join Date: Sep 2002
Location: upstate NY
Posts: 10,709
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
may claim a charitable contribution deduction for the excess of the purchase price paid for an item over its fair market value. The donor must be able to show, however, that he or she knew that the value of the item was less than the amount paid.
That's what I thought. You can only write off the amount above the market value. NOT the retail price. And there would be no way to prove that the value of the item is less than the winning bid anyway.

-Alice, SAHM to dd (2001) and ds (2004) each of whom was a homebirth.jpg, who each self-weaned at 4.5 years bfolderchild.gif, who both fambedsingle2.gif'd, who were bothcd.gif, and both: novaxnocirc.gif.   Also, gd.gif, and goorganic.jpg!

Sustainer is offline  
Reply

Quick Reply
Message:
Drag and Drop File Upload
Drag files here to attach!
Upload Progress: 0
Options

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off