Letter from IRS verifying Building Bridges can give tax deductions for Piano Donations
Below is an image of the letter from the IRS and the content of the entire letter follows.
IRS Letter on Piano Donations'
Content of Letter
- Internal Revenue Service
- Department of the Treasury
- District Director
- P. 0. Box 2508
- Cincinnati, OH 45201
- Person to Contact: Terrill Sarvis
- Date: January 12, 1999
- BUILDING BRIDGES
- 1300 Civic Drive Walnut Creek, CA 94596
- (Our current address is: 1630 No. Main Street #307, Walnut Creek, CA 94596)
Dear Sir or Madam:
We received your correspondence dated September 11, 1998, which requested written response for two scenarios.
The first scenario had to do with the organization receiving a contribution of a piano. The amount of the charitable contribution is generally the fair market value of the item at the time of the contribution. Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
The acknowledgement provided to the contributor of the non cash contribution must include the charitable organization name, date, identifying number, and a reasonably detailed description of the property (for more details see the enclosed Publications 526 and the instructions for Form 8283). The recording of the transaction is up to the organization as long as it is recorded in a reasonable fashion.
The second scenario appears to be a proposed transaction. We do no rule on proposed transactions. However, the enclosed Rev. Rul. 67-246 contains several examples regarding deductibility as charitable contributions, payments made in connection with admission to fund-raising activities.
If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.
Sincerely yours, Terrill Sarvis, Exempt Organizations Specialist