Quote:
Originally Posted by Jim VB
I don't think the IRS works that way Barry. There is only one taxable deduction for this donation and that goes to the gentleman who donated the card to the nuns.
The winning bidder just paid, in theory, fair market value for a card. He pays money. He gets a card. No deduction.
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There is probably no tax deduction for the donation either since there is nothing to deduct from.
I think an argument can be made that the price paid over the true fair value is a donation. A real-life example is a charity auction where a $50 face value prize is auctioned for $80 - $30 would be a deduction. But it would be hard to prove for this card and the IRS wouldn't buy it anyway.