Recently, we received a letter from one of our long-time volunteer plastic surgeons. In this letter, which he sent to hundreds of his friends and colleagues, he describes his experience of donating an appraised item having significant value, and how you can get full tax deduction value for non-cash donations.
We realize that donating property is a great idea! Using his idea, we hope to create a large potential group of non-cash donors for Alliance for Smiles.
As an added bonus, he has donated a BMW Roadster to be given to the person who makes the largest donation!
Please see his letter and photos of his car below for more details.
Letter from the Doctor:
It has been a long time since we have worked together on a mission. All of us have made prior commitments to the Alliance for Smiles’ cause, by volunteering on so many missions over the years. Some of us are still working. But, all of us are getting older and will be looking to retiring and to downsizing. I want to share my recent experience that allowed me to make a donation to AfS and benefit from the tax write-offs.
As you know, once you reach 70-1/2 years of age, IRS requires you to start taking required withdrawals from your IRA, SIMPLE IRA, SEP IRA, (401)K or other retirement plans. That amount is taxed as ordinary income. So, effectively you lose about 30% or more of your distribution. This is the Required Minimum Distribution (RMD). Uncle Sam wants his tax money.
My wife and I have reached an age when we are downsizing and trying to get rid of things around the house. Most of our kids are not interested in our art or our collectibles. We also have some real estate that sits idle.
Recently, we have made a donation, after an official appraisal, and have claimed full value as a deduction against our annual income tax liabilities. I will be getting some appraisals on paintings and art objects that I plan to donate to AfS. I also have a collection of antique slot machines. All of us have had something that we were passionate about and have collected. It could be art, a car, a vacant lot or anything of significant value.
You may sell it yourself or at an auction, but your profits technically are taxable as capital gains. If you donate the item to AfS, you will get the full appraised value as a tax write-off. And, avoid the hassle.
You do not have to wait until you are 70-1/2; we all pay taxes, no matter how old you are. Here is a chance to get full, appraised value for your donations. And, this may apply not only to you, but to other family members, friends or neighbors.
In 2005, I, along with many others, was on the very first AfS mission to Jiujiang, China to share a mutual dream with John Uth and Anita Stangl. That dream lives on. Please join me in making it possible for future volunteers to keep that dream alive, for generations to come.
With best personal regards,
PS. One of the “things” that I have collected is a fire engine red, 2006, BMW Z4 Convertible Roadster, with less than 25,000 miles.
I acquired it about 10 years ago and it has lived inside a garage during this time period.
It has been driven only when the sun is shining, which in Seattle, means not much.