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  1. #1
    Join Date
    Dec. 31, 2003
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    451

    Default Tax deduction for donated horse

    Anyone out there with experience on the rules? I donated a mare that I had owned since she was a weanling to a college for their equine program. I didn't pay much for her as a weanling but her value as a broodmare should be around 2500 -5000 since she is registered, and beautiful! Since I didn't buy her as an adult, and have no real cost basis, how do I handle it? I'm thinking her value is not significant enough to be appraised, but every little deduction helps.



  2. #2
    Join Date
    Dec. 31, 2003
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    451

    Exclamation

    Quote Originally Posted by trail blazer View Post
    Anyone out there with experience on the rules? I donated a mare that I had owned since she was a weanling to a college for their equine program. I didn't pay much for her as a weanling but her value as a broodmare should be around 2500 -5000 since she is registered, and beautiful! Since I didn't buy her as an adult, and have no real cost basis, how do I handle it? I'm thinking her value is not significant enough to be appraised, but every little deduction helps.
    BUMP



  3. #3
    Join Date
    Oct. 13, 2011
    Location
    Texas
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    1,273

    Default

    What breed? How are her lines? Etc.
    That all goes into price. What are broodmares, of her type, going for in your area? Is she broke to ride at all? Beauty isn't everything and neither is registration. I would look at what mares of her quality and calibur are going for in the area and go from there.

    Just remember, though we ALL want to do it, you can't put a price on your attachment.



  4. #4
    Join Date
    Dec. 31, 2003
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    451

    Default

    Well bred working cow QH lines with color. Since she never showed AQHA due to injury, I'm looking at under $5000. I don't think I need an appraisal at that price point, correct?



  5. #5
    Join Date
    Jul. 30, 2008
    Location
    Sioux Falls, SD
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    1,460

    Default

    http://finance.zacks.com/tax-deducti...roup-4040.html

    Your question is best for an accountant - I've seen anywhere from $500-$5000 online as the cut off for when an appraisal is required.
    If you don't like something, change it. If you can't change it, change your attitude.
    ~ Maya Angelou



  6. #6
    Join Date
    Aug. 12, 2010
    Location
    Westford, Massachusetts
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    3,922

    Default

    You should have established the fair market value of the horse at the time of donation...if you did not do a Form 8283 then, you'll need to go back to the college and do the paperwork now (http://www.irs.gov/pub/irs-pdf/f8283.pdf). You can determine the value yourself unless the horse is worth more than $5,000, in which case you need to have it appraised by a "Qualified Equine Appraiser" and have them sign the form and attach the appraisal.

    Fair market value will have to relate to how the college is using the horse, so her value as a broodmare is only relevant if they intend to breed her.


    1 members found this post helpful.

  7. #7
    Join Date
    Jun. 12, 2007
    Location
    Westchester County, NY
    Posts
    5,927

    Default

    Consult your accountant/tax preparer. You will need a receipt from the 501(c)(3) plus some documentation of fair market value. Whether other ads will suffice, or whether you need an appraisal, depends on the value.


    1 members found this post helpful.

  8. #8
    Join Date
    Oct. 13, 2011
    Location
    Texas
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    Default

    Quote Originally Posted by Canaqua View Post
    You should have established the fair market value of the horse at the time of donation...if you did not do a Form 8283 then, you'll need to go back to the college and do the paperwork now (http://www.irs.gov/pub/irs-pdf/f8283.pdf). You can determine the value yourself unless the horse is worth more than $5,000, in which case you need to have it appraised by a "Qualified Equine Appraiser" and have them sign the form and attach the appraisal.

    Fair market value will have to relate to how the college is using the horse, so her value as a broodmare is only relevant if they intend to breed her.
    This exactly. Under 5k you do not need her appraised.



  9. #9
    Join Date
    Dec. 31, 2003
    Posts
    451

    Default

    Quote Originally Posted by Canaqua View Post
    You should have established the fair market value of the horse at the time of donation...if you did not do a Form 8283 then, you'll need to go back to the college and do the paperwork now (http://www.irs.gov/pub/irs-pdf/f8283.pdf). You can determine the value yourself unless the horse is worth more than $5,000, in which case you need to have it appraised by a "Qualified Equine Appraiser" and have them sign the form and attach the appraisal.

    Fair market value will have to relate to how the college is using the horse, so her value as a broodmare is only relevant if they intend to breed her.

    Canaque and Tiff_Ann - thanks for the info! COTH is awesome!



  10. #10
    Join Date
    Aug. 25, 2007
    Posts
    9,055

    Default

    If you donate property to a 501(c) entity the burden of establishing value is on the taxpayers.

    The value that is deductible is the "fair market value" of the item in the hands of the taxpayer at the time of the donation.

    Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.

    Note that initial purchase price, depreciation, improvements, etc. are not really relevant except as they help establish "fair market value." Use by the charity is irrelevant.

    In short, the IRS will take your word on value up to $5000 at filing time. This value can be challenged in the event of an audit. Above $5000 the IRS won't take your word for value but wants a third party appraisal. This can also be challenged in the event of an audit.

    Keep in mind that if you get challenged on value it may be several years after the transaction. Get evidence of value now and keep it with your records. Auction listings, want ads, Craigs List, etc. are all evidence of value. If the evidence is electronic download hard copies and keep them with your tax information.

    G.
    Mangalarga Marchador: Uma Raça, Uma Paixão


    1 members found this post helpful.

  11. #11
    Join Date
    Jan. 28, 2002
    Location
    Alberta, Canada
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    Default

    Quote Originally Posted by Belmont View Post
    This exactly. Under 5k you do not need her appraised.
    This information is correct, for both the IRS and Revenue Canada. If the horse's fair market value is under $5,000, you do not need a certified equine appraisal done. But if the value of the horse is over $5,000, you will need to get a certified equine appraisal done.

    Tracy Dopko
    Daventry Equine Appraisal Services
    www.equineappraisers.com
    www.DaventryEquestrian.com
    Home of Welsh, ISR/Oldenburg, Westphalian & RPSI approved pony stallions Daventry's Power Play & Goldhills Brandysnap LOM
    Also home to www.EquineAppraisers.com



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