Donated Burial

[taxea]

Uh... do you mean that if it were for a designated "body", you would only use cost versus fmv?

(grin)

no I me a donation is not deductible if it is designated to a particular individual. i.e. I could not take a donation for this item/s if I told the mortuary that my intention for the donation is to bury you (tehee). I could only take it if my intention was to allow the church/mortuary to use it as they see fit.

[Possi]

Pre paid

I can't speak for any churches, let alone this one in particular, but many synagogues do operate cemeteries and sell plots. I can certainly imagine someone who bought a plot and then moved away, deciding not to use it, might choose to donate it back to the synagogue. They'd just add it to the list of unowned plots available to sell.

What I find interesting in this question is the inscription. How do you transfer an inscription? Is it just a pre-paid contract to carve the marble? Or an irrelevant reference to something already carved into the mausoleum?

It is a prepaid contract.

[Gary2]

I am curious as to what the church will actually do with it. Maybe sell it at a raffle? How in the world will they decide to whom to give it without incurring favoritism, or other problems? It's not like they can hold services in it for the general congregation. So what good is it to them? If they DO sell it, I think the IRS would want it to be treated like a car is -- deduction would be limited to what they get for it. Interesting hypothesis. Hopefully, it was not intended to be a gift to the minister/pastor/priest.

I can't speak for any churches, let alone this one in particular, but many synagogues do operate cemeteries and sell plots. I can certainly imagine someone who bought a plot and then moved away, deciding not to use it, might choose to donate it back to the synagogue. They'd just add it to the list of unowned plots available to sell.

What I find interesting in this question is the inscription. How do you transfer an inscription? Is it just a pre-paid contract to carve the marble? Or an irrelevant reference to something already carved into the mausoleum?

[Possi]

Will do that

There are rules about the written appraisal. The letter from the Church is not what you need in this case. Look at the back of Form 8283 and/or read the instrucitons.

If it were a peice of property, I could see the appraisal being pretty easy to attain. She isn't going to get an appraisal (I just spoke to her) so we are taking the cost.

This has been a great exercise for me and I appreciate ALL the input. I was so afraid to take the FMV and reading the fine-print affirmed my stand.

Gracias everyone!

[Burke]

If this is the same case she posted about earlier, the documents were not from the church. It was the cemetery.

[Kram BergGold]

Appraisal

There are rules about the written appraisal. The letter from the Church is not what you need in this case. Look at the back of Form 8283 and/or read the instrucitons.

[Burke]

If you feel comfortable that it was not donated for the use of a specifically identified person at this particular time, then I would treat it as any other cap gain property. FMV.

[Possi]

I don't know

I have no idea what they will do with it..
Her intension was to help someone who couldn't afford to be buried.
What would you do with this?? I really think the deduction is qualified for the FMV, as she would have had to pay gains if she sold it at the appreciated value.
Someone earlier mentioned this waving a big flag. I don't want to do that, but want to do what is right by my client.

[Burke]

I am curious as to what the church will actually do with it. Maybe sell it at a raffle? How in the world will they decide to whom to give it without incurring favoritism, or other problems? It's not like they can hold services in it for the general congregation. So what good is it to them? If they DO sell it, I think the IRS would want it to be treated like a car is -- deduction would be limited to what they get for it. Interesting hypothesis. Hopefully, it was not intended to be a gift to the minister/pastor/priest.

[Possi]

One particular body?

Well, nobody in particular is dying to use it just now, but someone somewhere will one day use it. There isn't an option to "hang it on the wall of the church," nor is it "on the market" like a used car at Goodwill. She's not waiting for a 1099.

I do not ever wish to visit the local IRS office regarding this, but I do want to give my client every good deduction.

[FEDUKE404]

But it IS worth that, right?

I tend to agree that the donation value would be capped at cost - it might be a bit difficult to come up with a legit value of $17k that would pass all Form 8283 muster with the IRS.

And then I could see a very large waving red flag on that tax return....

Reminds me of a situation a few years ago where a small church actually issued a donation "receipt" to the survivor for the costs of burying a deceased member on their grounds. (Look up the difference between "graveyard" and "cemetery.")

Client (who was executor/son) decided that would not be a wise thing to pursue on his personal taxes.

FE

[ChEAr$]

was this donation for one particular body or just to the church with no designation of use?

That would make a difference on whether it is deductible. If it is then I would use the lesser of the cost/fmv.

Uh... do you mean that if it were for a designated "body", you would only use cost versus fmv?

(grin)

[taxea]

was this donation for one particular body or just to the church with no designation of use?

That would make a difference on whether it is deductible. If it is then I would use the lesser of the cost/fmv.

[erchess]

Do not confuse

posting frequently and holding strong opinions with actual tax knowledge.

[Burke]

... that's one for a heavy hitter! Thanks, erchess!
do I hear a "second?"

I don't have any problem with it being capital gain property. It is a capital asset and they would have to report it as a long-term gain if sold.