Just saw a story on FNN about charities tossing away perfectly good toys donated for Christmas time. Of course the donors get the tax deduction because the toys are in "good" condition as IRS now mandates.
Trouble is, these are new toys made in China and contain lead based paints.
Next thing you know the tax law will be changed to add to the "good" condition requirement that all items be environmentally safe.
Christmas ChEAr$, Harlan Lunsford, EA n LA
That's interesting: A deduction for the donation of HAZARDOUS MATERIALS! Technically, isn't that also tax fraud?
Since all major chains are offering refunds for "recalled toys," wouldn't it be sensible for charities to "cash in" any recalled items?
Can't be bothered? That's what volunteers are for, isn't it?
Bill
Typically, chains don't give cash refunds without a receipt, and typically, people who donate toys to charities don't include the store receipt with the donation.
What is the Fair Market Value of such a toy?
$0 or less, I'd say.
Seth
How could that be considered tax fraud? Where is it written in the IRC? (It's the thought that counts! grin)
Christmas ChEAr$, Harlan Lunsford, EA n LA
To one knowledgeable, yes, zero. But not to everyone. Fair market value is defined as....... (etc
Christmas ChEAr$, Harlan Lunsford, EA n LA
IRC 6662 or 6663: Well, it's clearly at least an overvaluation if not fraud. There is no FMV as a toy for the object - just hazardous disposal costs.
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