Quote:
Originally Posted by gcar90
You know I had a random thought.
I realized that if you were given a really expensive present from somewhere. Like a car or something from a gameshow or /really/ generous talkshow host. (coughOprahorsomebodycough)
In the US, you'd have to claim that prize on your yearly Tax form and pay taxes on that present. It is possible, in the US, to get a Tax deduction for a large charitable donation.
So my random question and thought. If you were to be given a Car or something really expensive from a game show or talk show and /donated/ that car to a charitable organization, would the gift tax and charitable deduction cancel each other out? I'm not an accountant, but I'm assuming you would have to claim both acts on your tax form.
So thoughts, opinions, do we have any CPAs on the forums that can answer this question?
The IRS can be real bastards about Tax Discrepancies and this is the Tax thread... so go.
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You'd need to define the situation a bit more to give an absolute answer, but in almost all cases you'd deal with that involve giving things to charity, yes, they are completely deductible and would cancel each other out or better, from the taxpayer's point of view. It's one reason why charitable deductions are as popular as they are.