Questions on donating my computer nonprofit organizations and such

Discussion in 'Computer Support' started by Jason, Jul 5, 2004.

  1. Jason

    Jason Guest

    I have a year and half old computer thats in almost perfect condition. I
    just want to get rid of it to get a high end gaming computer.

    From what I understand; I can donate it, tell the nonprofit org what
    its worth, they give me a recipt for it, then at the end of the year
    write it off on my taxes and get the money back. Is that how it works?
    Sounds to good to be true. I was looking at sharetechnology.org for
    people in need.

    P4 @ 2.4GHZ
    512MB RDRAM
    CDRW Drive
    DVD Drive
    Floppy Drive
    ATI 9700 Pro
    17" LCD Monitor
     
    Jason, Jul 5, 2004
    #1
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  2. Jason

    Toolman Tim Guest

    Very good idea! Yes, tax deductible, all that.
     
    Toolman Tim, Jul 5, 2004
    #2
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  3. I'll give you $300 bucks for it, how much would it save you on taxes?
     
    =?ISO-8859-1?Q?R=F4g=EAr?=, Jul 5, 2004
    #3
  4. You won't get ALL of that amount back -- that would require a tax credit.

    You'll get back a small part of the donation amount, by way of one or
    two vehicles: the deduction will reduce your *income* (not your tax) by
    the amount of the donation; and *if* that happens to drop you from one
    tax bracket to the next lower one, you'll save a few bucks there, too.

    Not using real tax amounts, but just for example:

    You make $50,000; your tax is 20% = $10,000

    You donate a $1,000 computer.

    Your income is now $49,000; your tax is 20% x 49,000 = $9,800

    The $1,000 donation saved you $200 -- the difference is the
    20% tax assessment on the *income difference*.

    Too many people think "writing off" means "getting it all back at tax
    time". It doesn't. It's not free lunch.
     
    Blinky the Shark, Jul 5, 2004
    #4
  5. It *is* too good to be true, the way it's stated, Tim.
    Fair idea. He won't get "the money back"; he'll get some of the money back.

    See my own reply.
     
    Blinky the Shark, Jul 5, 2004
    #5
  6. Only part of what the donation is valued, if donated as contemplated. See
    my own response, Roger.
     
    Blinky the Shark, Jul 5, 2004
    #6
  7. Jason

    Max Guest

    That's about all that is involved in the U.S.
    As long as the organization is a registered charity, their receipts can
    be used for your taxes.
    When you file, you can deduct that as a charitable donation.
    Of course, the actual value of the computer is what matters
    technically. If it isn't really worth much, you could end up paying the
    difference. It might even be possible to get fined for tax fraud, but I
    don't know how common that is or if there is a limit.
     
    Max, Jul 5, 2004
    #7
  8. Jason

    Plato Guest

    No you dont "get your money back". You itemize and it just reduces your
    tax liability by some percentage.
     
    Plato, Jul 5, 2004
    #8
  9. Jason

    Plato Guest

    Perhaps. Perhaps not. It depends on what other deductions you have and
    how they add up. Sometimes its best to itemize, sometimes its best to
    not. One may have to do their taxes both ways to find out which is best.
     
    Plato, Jul 5, 2004
    #9
  10. Jason

    Unknown Guest

    There is no way to get ANY money back. You can however get a reduction of your
    taxes IF your itemized deductions exceeds the standardized
    deductions.---------Fat chance unless you pay high real-estate taxes. (Average
    people).
     
    Unknown, Jul 5, 2004
    #10
  11. I know. I assumed he *does* itemize, or his question is pointless in
    the first place.
     
    Blinky the Shark, Jul 6, 2004
    #11
  12. Or have a mortgage, or medical expenses. These aren't exactly uneheard of.
     
    Blinky the Shark, Jul 6, 2004
    #12
  13. Jason

    Toolman Tim Guest

    Likewise. On the other hand, even if the OP isn't eligible to itemize,
    there's always the warm, fuzzy feeling ya get from doing something nice once
    in a while ;o)
     
    Toolman Tim, Jul 6, 2004
    #13
  14. Jason

    Jason Guest

    Thanks for the responses. I think i'll just keep my computer for awhile.

    I just didnt know how it worked and it sounded different then it is.
     
    Jason, Jul 6, 2004
    #14
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