Donating equipment / Professional Appraisal needed
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  1. #1
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    Default Donating equipment / Professional Appraisal needed

    Not sure if this belongs in commerce or business discussion.

    I have a Rockford Mill, Southbend Lathe, and an assortment of related equipment that I am considering to donate to a local non-profit. I know it isn't worth much, but I would like to see if I could get a legitimate appraisal for tax purposes. Does anyone know an auctioneer or other professional who could provide me with an appraisal? My shop is located near Dubuque, IA.

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    Appraisal services are worth what they cost and that cost would wash the deduction.

    But you have other options.

    Turbo tax has a tool for this that uses assorted databases to determine values and it works well but may not have your stuff.

    Plan "B" costs nothing but good start to get value.

    You basically need to show value and value is determined by what folks have paid for one.

    Ebay completed sales within a reasonable distance works here.

    Every market is different due to supply demand so start by creating a search for say the SB lathe then add terms to filter to just your model then click completed and now you have the value.

    Be sure to insure same model as things like taper make a difference.

    Get at least 3 for each item and print them as well as soft copies.
    Create a document that lists each item of value and a line for included accessories as a lot and a value and include copies of your supporting documents that will be the "transaction record" that the receiver signs.

    This provides clear record for them and a single item for you to use on your tax form.

    Bear in mind 2 things.

    Your itemize deductions need to be greater than the standard deductions yo matter so check that first.

    Then you need to check with your person who does your taxes to confirm above works....UT did for us but that was years ago.

    Sent from my SAMSUNG-SGH-I337Z using Tapatalk

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    Ebay completed auctions. Find 3 for each item. Print out. Go eat. Done.

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    Quote Originally Posted by Ggerg1186 View Post
    Not sure if this belongs in commerce or business discussion.

    I have a Rockford Mill, Southbend Lathe, and an assortment of related equipment that I am considering to donate to a local non-profit. I know it isn't worth much,
    Probably doesn't belong in either venue..

    If .. you were in a high-enough tax bracket any sane valuation would actually do you any good?

    - You wudda had better machine tools.

    - You wouldn't really need the deduction.

    - The cost of possibly drawing an audit down on your head would exceed any gain.

    Reasonably modern CNC machining center donated at 40 to 60 large or more? Surely.

    What you have? I'd say fageddaboudit.

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    In you case if the total value (i.e. all the machines combined) is over $5,000 you need a "Qualified Appraisal" done by a "Qualified Appraiser". You could skip this and if you never got audited your good to go. You don't have to send in the appraisal with your tax return. I was told that donations are a red flag in the IRS's system.

    Everything you need to know is the the IRS document below.

    Publication 561 (4/27), Determining the Value of Donated Property | Internal Revenue Service

    I'm looking to donate some equipment and they make it pretty tough. If you read the document they basically say jump through all of these hoops and then we may or may not allow it. Below are the IRS rules for a Qualified Appraiser:

    Qualified appraiser.

    A qualified appraiser is an individual who meets all the following requirements.

    The individual either:

    Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or

    Has met certain minimum education and experience requirements. For real property, the appraiser must be licensed or certified for the type of property being appraised in the state in which the property is located. For property other than real property, the appraiser must have successfully completed college or professional-level coursework relevant to the property being valued, must have at least 2 years of experience in the trade or business of buying, selling, or valuing the type of property being valued, and must fully describe in the appraisal his or her qualifying education and experience.

    The individual regularly prepares appraisals for which he or she is paid.

    The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration in the appraisal that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued.

    The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.

    The individual is not an excluded individual.

    In addition, the appraiser must complete Form 8283, Section B, Part III. More than one appraiser may appraise the property, provided that each complies with the requirements, including signing the qualified appraisal and Form 8283, Section B, Part III.

    Your head will hurt after reading it, mine did.

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    It may work differently if the recipient is going to sell it rather than use it.
    Case in point: a couple of years ago, we donated a car to local Vet organization. They accept it, we do paperwork, they subsequently sell it (via auction in this case). A week or so after auction, we get a letter saying "we got $X for the car you donated to us, so that's the value of your donation for IRS purposes". Accountant plugs it in, and all is good.

    I believe the actual date of donation and the resolution bridged the end of a calendar year, but it was all wrapped up prior to filing deadline for that time period. I think we drove the car to the donation office rather than wait for their capacity to pick it up via flatbed. Saved them some bucks, and got us in under the wire for that year.

    If OP is looking to donate by tomorrow, he should verify whether physical possession is a requirement for deductibility under 2017 tax year. With titled things, like cars, it's likely that paperwork xfer would suffice. Lathes and mills aren't titled, so don't know if there's an official-enough paperwork flow to retrospectively convince IRS of their transfer to charity. Consult your tax folks, who I'm sure are doing nothing around the office lately...

    Chip

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    Quote Originally Posted by Ggerg1186 View Post
    Not sure if this belongs in commerce or business discussion.

    I have a Rockford Mill, Southbend Lathe, and an assortment of related equipment that I am considering to donate to a local non-profit. I know it isn't worth much, but I would like to see if I could get a legitimate appraisal for tax purposes. Does anyone know an auctioneer or other professional who could provide me with an appraisal? My shop is located near Dubuque, IA.
    Are these usable machines I like older machines maybe I could help out the non profit

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    I have no idea if there may be a legal problem with your donations. Since these are old I assume they do not meet current OSHA standards for safety.
    What happens if they use or sell to someone else and they use your machine and get hurt. Is there any legal liability on you? If you donate an old car and some one gets hurt because it does not have all the latest airbags etc you are not going to be sued. but machine tools OSHA expects you to upgrade to latest guards and safety switches etc.
    Bill D


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