Tax Tips for Donating Your Horse
If you're considering donating
a horse, consider the following tax tips when seeking a deduction.
In the July 2005 issue of Horse & Rider
we explored various options for horse donations. Can you
expect a tax write off if you donate your horse? Keep these
tips in mind as you explore options for donating your horse.
Call 301-977-3900 to order the July 2005
issue of Horse & Rider to explore donation options.
- Get advice from an accountant before
claiming a tax deduction for your horse.
- Be sure the organization qualifies as
a charity under IRS guidelines.
- IRS regulations generally allow you
to deduct "fair market value"--the price your horse
would fetch on the day you make the donation. If you are
donating an aged, foundered horse to a rescue group, for
example, you will not be able to claim the price you
paid when he was a 4-year-old show champion.
- Most nonprofits let the donor
determine the fair market value of the horse.
- If the value is more than $500,
you'll need to file IRS form 8283 with your tax return
to claim the deduction.
- If the value is more than $5,000, you
will need to support the claim with a written appraisal
by a qualified independent expert, such as an
experienced professional trainer. Have two appraisals,
in case the IRS disallows one.