Questions on donating my computer nonprofit organizations and such

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

 

Very good idea! Yes, tax deductible, all that.

 

I'll give you $300 bucks for it, how much would it save you on taxes?

 

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.

 

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.

 

Only part of what the donation is valued, if donated as contemplated. See
my own response, Roger.

 

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.

 

No you dont "get your money back". You itemize and it just reduces your
tax liability by some percentage.

 

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.

 

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).

 

I know. I assumed he *does* itemize, or his question is pointless in
the first place.

 

Or have a mortgage, or medical expenses. These aren't exactly uneheard of.

 

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)

 

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.