Wind Beneath My Wings, Inc.



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Bargain Sale Donation to Wind Beneath My Wings

What is a Bargain Sale Donation? If your property exceeds $10,000 in value you may be eligible to receive part of the value back to you in cash from WBW.

WBW will pay the donor a partial sum for the donation and the balance of the appraised value is deductible by the donor. You are responsible for finding an appraiser to determine the worth of your contribution. WBW is not allowed to appraise such donations.

You may donate property to WBW and we will either find a Non Profit Organization endorsed by WBW or the property will sold and the proceeds donated to such an organization. You may request to which Non Profit that you would like such proceeds to be donated.

WBW accepts the following types of donations: Automobiles, Art work, real estate, boats, antiques, music and book royalties, musical instruments and jewelry. Clothing and furniture is not accepted at this time.

The Law: The IRS allows deductions for charitable donations based upon current tax law

Charitable contributions are deductible only if you itemize deductions on Form 1040, Schedule A (PDF).

To be deductible, charitable contributions must be made to qualified organizations. See Publication 526, Charitable Contributions.

If your contribution entitles you to merchandise, goods, or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. For a contribution of cash, check, or other monetary gift (regardless of amount), you must maintain as a record of the contribution either a bank record or a written communication from the donee organization containing the date and amount of the contribution and the name of the donee. You generally can deduct the fair market value of any property you donate, as well as your cash contributions, to qualified organizations. See Publication 561, Determining the Value of Donated Property.

For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the donee organization indicating the amount of the cash and a description of any property contributed, and whether the donee organization provided any goods or services in exchange for the gift. One document from the donee organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgement requirement for all contributions of $250 or more.

You must fill out Form 8283 (PDF) Section A, if your total deduction for all noncash contributions is more than $500. An appraisal generally must be obtained if you claim a deduction for a contribution of noncash property worth more than $5,000. In that case, you must also fill out Form 8283 Section B. Attach Form 8283 to your return.

For more information refer to Publication 526, Charitable Contributions, and for information on determining value, refer to Publication 561, Determining the Value of Donated Property

TO MAKE A TAX DEDUCTIBLE CONTRIBUTION FILL IN THE FOLLOWING INFORMATION

Name

Email Address

Telephone Fax

Address:

Type of Donation (explain in detail)

Your estimate of the financial value: $

Are you considering an outright donation or a Bargain Sale Donation?

"BARGAIN SALE DONATION"

A "bargain sale" of a high-end asset to a qualified nonprofit organization allows the seller both to receive cash from the sale and to claim a charitable contribution for a tax deduction as permitted by law. The difference between the appraised value of the boat at the time of the sale and the cash received can be used to reduce up to 50% percent of the donor / seller's adjusted gross income (AGI) for that year and up to five years thereafter.

BARGAIN SALE OPTION

Depending on its condition, you could receive immediate cash up to an amount of $200,000, plus a receipt for $250,000 as a tax-deductible donation to the chosen nonprofit organization. This could reduce your AGI by as much as 50 percent and can be carried forward up to six years.

APPRAISED VALUE:	$450,000
BARGAIN SALE CASH:	$200,000
CHARITABLE CONTRIBUTION:	$250,000

Based on an annual income of $180,000, you may use the donation to reduce your AGI by up to 50% each year as a deduction on your tax returns (i.e. at a 40% Federal and State Tax Bracket) saving up to $100,000 in taxes over the next two years. The bottom line to you is net $300,000, with cash in hand and the balance secured! All ongoing costs have disappeared, with no broker's commission to be paid. You may even request the charity where the resulting funds will go.

CASH PORTION OF BARGAIN SALE:	$200,000
BARGAIN SALE:
FIRST YEAR
TAX SAVINGS:	$90,000
SECOND YEAR
TAX SAVINGS:	$10,000

TOTAL VALUE RECEIVED:	$300,000