The expected practice with the IRS (in the US) is that the person who is
donating an item declares its value; for items under $500 they do not need
any outside appraisal, whereas they do for items valued over $500.
So - in the instance of a very high end item that they felt was worth more
than $500, it would need to be independently appraised.
In most cases regarding items valued significantly less than that, as
relative "experts" in the field I am comfortable suggesting a value for a
supporter donating a bike (e.g. "I think that trek road bike could be
valued at $150").
On Aug 9, 2014 4:14 PM, thethinktank-request@lists.bikecollectives.org
wrote:
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Today's Topics:
- Re: Appraising the value of a bike (mfen651@aol.com)
- Re: Appraising the value of a bike (Rick Nonnekes)
- Re: Appraising the value of a bike (Jim)
- Bike!bike! Workshops (Darren Knox)
- Re: Survey on starting and sustaining a bike co-op
(Falls City Community BikeWorks Community BikeWorks)
- Re: Survey on starting and sustaining a bike co-op (Sam Lorrimer)
Message: 1
Date: Sat, 9 Aug 2014 00:44:38 -0400 (EDT)
From: mfen651@aol.com
To: thethinktank@lists.bikecollectives.org
Subject: Re: [TheThinkTank] Appraising the value of a bike
Message-ID: 8D181A3C2168618-150C-A2A7@webmail-m235.sysops.aol.com
Content-Type: text/plain; charset="us-ascii"
Okay, perhaps I need to write more exactly, or perhaps readers need to be
more open and less judgmental of others who participate.
The question was about valuing a unique item. The inference was that the
party in possession placed an extreme value on it.
The statement was clear that it had no knowledge of how to value the item
in question.
My suggestion took into account the many people that "donate" items. I
can suggest hundreds of reasons people donate beyond the ones put forth by
those of you negatively reflecting on my comment.
There is a difference between people who bring in a bike (or any item) for
"donation" and leave it, and those that "donate" in exchange for a receipt
"for value" with the intention of taking a tax deduction.
I'm not going to address the differences, because they should be clear,
but if they are not, then its not for me to teach.
I never said people are greedy, but experience has taught me that if they
are seeking a receipt "for value", and are assigned a lower than their
estimated value they will show their displeasure.
I'm sure my response to the two comments of negativity will bring more
negative responses. Save your time and energy. My comment was what it is,
and remains valid.
The reason the taxing authorities don't want direct appraisals, is because
everything would be valued significantly below its actual value, enabling
the vendor to earn copious ill gotten gains at the expense of the one who
donated it.
If that isn't greed, I don't know what is? But then that was your
comments, not mine.
Matt
-----Original Message-----
From: sheldon mains sheldon@spokesconnect.org
To: The Think Tank thethinktank@lists.bikecollectives.org
Sent: Fri, Aug 8, 2014 3:49 pm
Subject: Re: [TheThinkTank] Appraising the value of a bike
I agree with Christopher. There are a lot of reasons people donate. I
find most people are not greedy. They donate because the like what the
organization does. They donate because they want their bike to "have a good
home" They donate because they can get a tax break. They donate because
they don't want to go through the hassle of selling it. They donate
because it is the easiest way to dispose of something.
Yes, some of the bikes we get donated are really just trash and go to our
recycler immediately. But we get some great bikes donated that can be
rehabilitated and sold or used for a community bike library or used for an
Earn-a-Bike program
..............
Sheldon Mains
SPOKES Bike Walk Connect
www.SpokesConnect.org www.fb.com/SpokesConnect
Minneapolis, MN 612/618-7149
Three ways to donate to SPOKES:
- Volunteer. 2. Donate repairable used bikes. 3. Financial donations
always welcome. Check www.SpokesConnect.org for details.
On Thu, Aug 7, 2014 at 11:05 PM, christopher@holisticcycles.com wrote:
Matt, I had a woman who donated her brothers (very nice ) bikes to me, not
because she could not sell them,, after his suicide, she just wanted a good
person to have these things. She asked me to do good with them. I did just
that for her. Not always is something donated because people can not sell
it.
Christopher Wallace
Holistic Cycles
140 Harrison St
Oak Park, IL. 60304
-------- Original Message --------
Subject: Re: [TheThinkTank] Appraising the value of a bike
From: mfen651@aol.com
Date: Thu, August 07, 2014 1:06 pm
To: thethinktank@lists.bikecollectives.org
Long shot here, but this is not a matter of IRS or Ministry of CD, its a
matter of market.
I've traded in exotic cars and rare aviation artifacts for many years.
I've seen all sorts of things claimed to have all sorts of value. At the
end of the day, if its a collectable and has value, why would she be
donating it to a collective? Because she can't sell it, that's why.
However the bottom line is what will the market pay for it? If she is
going to donate it to you, it has no value, unless she can (a) substantiate
that it is 24kt gold, note gold chrome. (b) That there is a market for it.
The last point (b) is why the IRS and Finance Ministry would both frown on
the recipient determining the value in the absence of any substantial
evidence for that value.
Somewhere in Canada there is someone who is a purported "expert" in
bicycles and another who might likely be a metallurgist and can chemically
or otherwise verify the gold v. chrome matter. Then the "expert" should be
able to determine if there is a market for this bike regardless of gold v.
chrome.
Good luck. Would enjoy knowing the outcome.
Thank you
Matt
-----Original Message-----
From: sheldon mains sheldon@spokesconnect.org
To: The Think Tank thethinktank@lists.bikecollectives.org
Sent: Thu, Aug 7, 2014 3:02 pm
Subject: Re: [TheThinkTank] Appraising the value of a bike
The IRS really frowns on the recipient of donated goods providing a value.
She should get it appraised herself. With the special condition, it may be
more difficult. Maybe an antique dealer would be a good bet.
sheldon
..............
Sheldon Mains
SPOKES Bike Walk Connect
www.SpokesConnect.org www.fb.com/SpokesConnect
Minneapolis, MN 612/618-7149
Three ways to donate to SPOKES:
- Volunteer. 2. Donate repairable used bikes. 3. Financial donations
always welcome. Check www.SpokesConnect.org for details.
On Thu, Aug 7, 2014 at 7:25 AM, Rick Nonnekes rnonnekes@gmail.com wrote:
We recently had a lady bring in a bike for donation. It is an early
1980's Rossi Columbia, custom made for her. She's adamant that it is plated
with 24k gold - looks like it too (although we're speculating on gold
coloured chrome). It's in good condition. Can anyone suggest how we can
get it appraised for value?
Cycle Transitions,
Cobourg Ontario, Canada
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