New 20 ounce tumblers available now! Forum donation credit with purchase. https://www.wildguzzi.com/Products/products.htm#Tumbler
I'd say do the donation and don't do the write-off. It's not really charity if you get money back, and it's not really a donation if it has no actual value.$0.02
Not to pick a nit, but I think in this case, the donation would be a tax deduction, not a tax exemption.Example:You earned $50,000. If you donated the motorcycle, and it was worth $1000, and you could take the $1000 as a tax exemption, then, you would pay taxes on $49,000.You earned $50,000. If you could take the $1000 as a tax deduction, your deduction would equal $1000 x whatever tax bracket you fall under. If for example, you fell under a 15% bracket, you could reduce your tax bill by $150.00. You won't recoup $1000, because the gift is a deduction, not an exemption. A nice gift on your part to a charity, and a reasonable deduction for you.Any accountants out there that can confirm this?
I'm a couple of drinks in, but it sounds like you described the same thing twice.An EXEMPTION (or tax credit) would be if you could reduce the amount of tax you pay by the full $1000.A DEDUCTION would be if you reduce the income on which to pay taxes buy the $1,000 so you only save your effective tax bracket's worth of the $1k. So in your example $150.Donating a vehicle or anything to charity is at most a deduction.
Kev, if that's not what I said, that's what I meant.Bob
I thought that was what you meant, but it looked to me like both examples were actually showing deductions.For the first example to have been an exemption (tax credit) you would have had to figure out how much tax one would owe with an income of $50k and then reduce THAT tax by $1k.
Got it! Thanks. I was thinking that an exemption allowed the filer to subtract the entire ($1000 in my example) from their gross income. Then calculate their taxes based on that amount. That's why I let Dave the accountant do my taxes! Bob
Under Trump, the Republican House/Senate may make this taxation for 2017 different retroactively before the end of this year so what you are attempting to do is void tax wise. I would wait 'till December to see if the tax rules change.
I'd take it to the local BMW owners group and donate it as a raffle prize (or whatever else they want to do with it).
As a proud K75 owner myself I can say the above is worth next to nothing. However, if you can pick up a K75 bike or working transmission for again, next to nothing, and do a swap, you'll have a bike worth about $1000-1500. Sad for such a nice bike that could still provide many years and miles of service but that is what they are "worth".