[sndeng]

Our organization is purchasing a piece of equipment from an Individual. Since the price is well below the value of the equipment, they have requested a charitable tax donation write off. We are not a 501C-3 and cold not provide this. Another organization, tied very closely to our, has agreed to give this person a charitable write off receipt for the additional value of the equipment. Is this legal to do?

[ScottGem]

Probably not. For the other company to give a tax deduction then turn around and give the equipment to your company would probably be considered tax fraud

[Fr_Chuck]

No, since the equipment is not being given to the other organization.

[sndeng]

Probably not. For the other company to give a tax deduction then turn around and give the equipment to your company would probably be considered tax fraud

Thank you for your reply.
I'm not too good at explaining things so, let me try again. Our organization is wanting to purchase an piece of equipment valued at $6,000.00 for $3,000.00 cash. The owner of the equipment agreed to sell it to us for $3,000.00 and a tax write off receipt for the difference of $3,000.00. We are not a 501(c)(3) but, a 501(c)(4). Another organization that is a 501(c)(3) and performs the same work we do has agreed to give this person the tax receipt. I hope that makes sense.

[ScottGem]

Doesn't seem to change the deal. But lets say, the other company purchases it for $3000 plus the writeoff. Then you you purchase it from the other company for, lets say $3100. That might fly since the other company purchased the equipment for the purposes of getting a return.

That would still be pretty iffy and I would run it by a tax attorney first.