$5 into a $100 tax credit!

[SilverEdge]

For those of you who followed or took part in the Linksys Network in a Box deal from this thread, here is what I did with it! Bought the Box at OM B&M for $19...with $15 mail-in rebate, that takes the cost down to $4 plus tax...call it $5. I then donated it to a non-profit school who gave me $100 tax credit for my donation since I was able to provide documentation that it retailed for that.

What is really awesome, is since you can get 3 rebates, I bought three, rebate them...total cost coming to ~ $15. Donate all three, for a tax credit of $300!!!

Pretty hot in my book! Feel free to PM or email me if you want more info.

 

[sewerrat]

This qualifies as a tax "deduction", not a tax "credit" as you state.

In order to use the deduction you must itemize on Schedule A.

Also, the "value" of the deduction depends on the tax bracket you are in. For example, if you are in the 15% tax bracket the value of your deduction is $100 * .15 = $15.00. Much easier to donate clothes, old furniture, etc. Just my opinion.

Lovingly

The Tax Accountant Sewerrat

 

[SilverEdge]

Ack...are you kidding? *frowns* Back to talk with the Director of Development! Thanks for the heads up, Ill look into this more.

 

[kranky]

Yep, sewerrat is right. But more than that, you can only deduct the value of a donated item up to your cost. If it wasn't done that way, millions of people would buy items on closeouts and deduct the retail value which would be much higher.