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Posting-Version: version B 2.10.2 9/18/84; site watmath.UUCP
Path: utzoo!watmath!jmsellens
From: jmsellens@watmath.UUCP (John M Sellens)
Newsgroups: net.taxes
Subject: US Charitable Donation deduction rules
Message-ID: <12145@watmath.UUCP>
Date: Sun, 24-Mar-85 21:12:00 EST
Article-I.D.: watmath.12145
Posted: Sun Mar 24 21:12:00 1985
Date-Received: Mon, 25-Mar-85 02:48:38 EST
Reply-To: jmsellens@watmath.UUCP (John M Sellens)
Organization: U of Waterloo, Ontario
Lines: 32

In article <1038@islenet.UUCP> bob@islenet.UUCP (Robert P. Cunningham) writes:
>> ( Concerning ksh pricing by AT&T )
>
>Perhaps AT&T leadership will once again see the wisdom in helping to
>support U.S. higher education, and consider giving software such as ksh
>to universities ... and incidentally gaining a $2,000 per-gift tax
>deduction.
>-- 
>Bob Cunningham   ..{dual,ihnp4,vortex}!islenet!bob

I always seem to hear people in the States talking about donatinos in this
way.  Do they really work this way?

For example, suppose AT&T had some software that they offered for sale at
$10,000 a pop.  But nobody wanted it, because it wasn't particularly good.
Does this mean that AT&T could give this useless junk to all the not for
profit organizations that it could find and get a whole slew of $10,000
deductions?  If so, this would be a handy way to reduce their taxable income
to a much smaller amount.  This is in effect getting a deduction for giving
up the profit that you wouldn't have made anyhow.

My understanding of the Canadian tax law on donations (it's been a little
while) is that you can only deduct the cost or value of tangible (real)
property that you donate.  As an example, this would allow you to deduct
the direct costs of the software gift (e.g. the tape, incremental
duplicating costs, freight, etc.) but not the "value" of the software
licence.  (Am I right Dave?)

Anybody have the straight poop on this?

John Sellens
{decvax|utzoo|ihnp4|allegra|clyde}!watmath!jmsellens