Thanks everyone for responding. 

My question is whether, in the U.S., you call the sale value of donated bicycles a donation or business income. 

For example, if the former, it could contribute to meeting a public support test. 

Of course we pay taxes on sales. 



On Jun 5, 2015, at 11:56 AM, Angel York <aniola@gmail.com> wrote:

Assuming that you're run under a nonprofit, I think that if people give you bikes, those are donations. If people buy the bikes, I think that's a donation as well and I'm not sure they have to pay taxes.  I would call the IRS to confirm.

On May 23, 2015 7:33 AM, "Martin, Eric Vance" <evmartin@indiana.edu> wrote:
Clarification: I don't mean anything to do with sales taxes, which we pay on everything we sell. I mean, is this effectively a (cash) donation? Would it be evidence of public support for the IRS?



> On May 23, 2015, at 10:17 AM, Martin, Eric Vance <evmartin@indiana.edu> wrote:
>
> People give us bikes, and we sell them. This is our main income.
>
> Should we be treating this/reporting this as related business income or as a donation (realized FMV of an in-kind donation)? What do you guys do?
>
> We have a fiscal agent. Let's say the answer does not affect their public support test.
>
> ____________________________________
>
> The ThinkTank mailing List
> <a href="http://lists.bikecollectives.org/options.cgi/thethinktank-bikecollectives.org">Unsubscribe from this list</a>
>
____________________________________

The ThinkTank mailing List
<a href="http://lists.bikecollectives.org/options.cgi/thethinktank-bikecollectives.org">Unsubscribe from this list</a>

____________________________________

The ThinkTank mailing List
<a href="http://lists.bikecollectives.org/options.cgi/thethinktank-bikecollectives.org">Unsubscribe from this list</a>