The Black Strat....

[Chistopher]

Re: The Black Strat....

Once you write an album like Dark Side of the Moon, you can charge whatever you want for your gear. I mean, it went platinum 15 times in the US and has been on Billboards 200 for longer than the total time America has been involved in armed conflicts.

 

[NegativeEase]

Re: The Black Strat....

Question, if you purposefully overpay for a charity item -don't you get a deductible write off?

It's not like paying market value for a guitar if it's a charity auction right?

-so technically this guy could have just bought that item and actually got it for very cheap after taxes.

I could be wrong, but my brother managers a billionaires money and he donates and buys stuff every year -not just for philanthropic reasons but also because of Tax liability, saving overall money, and being able to direct money collected directly to causes you want to support instead of to the generic Federal coffers.

 

[AlexR]

Re: The Black Strat....

The people buying are simply making a purchase just like normal. Its just that the proceeds from David Gilmour's point of view are not taxable as they are directly put into charity.

 

[NegativeEase]

Re: The Black Strat....

The people buying are simply making a purchase just like normal. Its just that the proceeds from David Gilmour's point of view are not taxable as they are directly put into charity.

Got it -thanks

then the purchaser made a 3.3 million outright purchase for Gilmour's guitar?

daaaaaaamn -that's both noble and completely stupid at the same time. :lmao:

 

[PFDarkside]

Re: The Black Strat....

Well, he has a net worth of $2B, and NFL franchises are essentially a license to print money, so it’s not that crazy.

He spent about 2% of his net worth. To put it in perspective, that’s like someone with a net worth of $100,000 spending $200 at an auction.

 

[NegativeEase]

Re: The Black Strat....

Well, he has a net worth of $2B, and NFL franchises are essentially a license to print money, so it’s not that crazy.

He spent about 2% of his net worth. To put it in perspective, that’s like someone with a net worth of $100,000 spending $200 at an auction.

I get that. but Value is not a function of % of income or impact to lifestyle. -it's a function of price versus functional use measured in some way (enjoyment or producing future income) or investment potentional and versus an alternate use of income.

honestly he can be dumb about his money so It makes sense -I would be too. -but still dumb from a Value perspective

 

[PFDarkside]

Re: The Black Strat....

I get that. but Value is not a function of % of income or impact to lifestyle. -it's a function of price versus functional use measured in some way (enjoyment or producing future income) or investment potentional and versus an alternate use of income.

honestly he can be dumb about his money so It makes sense -I would be too. -but still dumb from a Value perspective

But at that point it’s “what do I want”. Not really a value there other than personal and potentially an investment if it goes up in value. If I was in his position I’d have done the same thing.

 

[NegativeEase]

Re: The Black Strat....

But at that point it’s “what do I want”. Not really a value there other than personal and potentially an investment if it goes up in value. If I was in his position I’d have done the same thing.

me too! no doubt! still doesn't make it wise. :lmao:

 

[Chistopher]

Re: The Black Strat....

If your net worth is $2B, if he bought it only to have it stolen/lost/destroyed, he'd only be wasting at most a days wage.

 

[devastone]

Re: The Black Strat....

Question, if you purposefully overpay for a charity item -don't you get a deductible write off?

It's not like paying market value for a guitar if it's a charity auction right?

-so technically this guy could have just bought that item and actually got it for very cheap after taxes.

I could be wrong, but my brother managers a billionaires money and he donates and buys stuff every year -not just for philanthropic reasons but also because of Tax liability, saving overall money, and being able to direct money collected directly to causes you want to support instead of to the generic Federal coffers.

Pretty sure it is just considered a purchase as goods were exchanged, I think that would be a loophole the taxing entities (whether US or UK) don't want to open up. Donating stuff is a write-off and direct donations to tax exempt non-profits is a write off (meaning you can't give money to your brother in law and write it off unless he has a tax exempt status from the gov't), but I think anytime any goods are exchanged it's not. That's why you can't deduct raffle tickets to the best of my knowledge, you have purchased something, even if it's just the "chance" for something else.

But, I could be wrong, I'm not a lawyer nor do I dress like one. Sounds like a good question to ask your brother.

 

[NegativeEase]

Re: The Black Strat....

Pretty sure it is just considered a purchase as goods were exchanged, I think that would be a loophole the taxing entities (whether US or UK) don't want to open up. Donating stuff is a write-off and direct donations to tax exempt non-profits is a write off (meaning you can't give money to your brother in law and write it off unless he has a tax exempt status from the gov't), but I think anytime any goods are exchanged it's not. That's why you can't deduct raffle tickets to the best of my knowledge, you have purchased something, even if it's just the "chance" for something else.

But, I could be wrong, I'm not a lawyer nor do I dress like one. Sounds like a good question to ask your brother.

I wonder since he purchased it at like 2 million over non-charity market value -if he could write off the difference :lmao: -essentially he's gifting/donating above market value. Or at least I would find an accountant that would pursue that.

 

[devastone]

Re: The Black Strat....

I think that is pretty black and white, he got goods for his $ and I doubt Christies has tax exempt status :33:, it's not like a non-profit was selling the guitar.

 

[IMENATOR]

Re: The Black Strat....

I should have stolen it from Hard Rock Cafe when it was just a piece of ornament.

 

[Chistopher]

Re: The Black Strat....

I wonder since he purchased it at like 2 million over non-charity market value -if he could write off the difference :lmao: -essentially he's gifting/donating above market value. Or at least I would find an accountant that would pursue that.

Getting a tax exemption for paying more than the appraised value of the guitar would make an unfair auction and screw over the tax payers. If the guitar was appraised at $1M, and you can afford the $1M, why not just bid any amount knowing that John Q. Taxpayer will cover the rest? The auction would never end.

 

[Francois]

Re: The Black Strat....

At such price you don't complain for 21 frets.

 

[AlexR]

Re: The Black Strat....

I wonder since he purchased it at like 2 million over non-charity market value -if he could write off the difference :lmao: -essentially he's gifting/donating above market value. Or at least I would find an accountant that would pursue that.

There is no such thing as market value for such an item. Nor is there any such thing ever as 'non-charity' market value. And for the last time, he's not gifting anything fullstop. He is buying a guitar just the same way you would if you went to a auction house yourself and bought something.

And I bet there are heaps of accountants about with zero morals who will, despite knowing there is nothing whatsoever to pursue, will be looking for gullible people (you seem to be) to pretend to investigate options.

 

[beaubrummels]

Re: The Black Strat....

Getting a tax exemption for paying more than the appraised value of the guitar would make an unfair auction and screw over the tax payers. If the guitar was appraised at $1M, and you can afford the $1M, why not just bid any amount knowing that John Q. Taxpayer will cover the rest? The auction would never end.

I don’t think it works exactly like that. I bought something once that was well over market value as a charity sale and the way it worked was the market value portion was considered a purchase and the amount over that was a charitable donation, however, when you write off a charitable donation, there is a cap percentage of your income that can be written off, and the write off only lowers your taxable income by a relative percentage - you are not getting 100% free money. You are just lowering your taxable income by a percentage of what you donated. Also depends on where the purchase was made and what the laws are where you file.

 

[Chistopher]

Re: The Black Strat....

I don’t think it works exactly like that. I bought something once that was well over market value as a charity sale and the way it worked was the market value portion was considered a purchase and the amount over that was a charitable donation, however, when you write off a charitable donation, there is a cap percentage of your income that can be written off, and the write off only lowers your taxable income by a relative percentage - you are not getting 100% free money. You are just lowering your taxable income by a percentage of what you donated. Also depends on where the purchase was made and what the laws are where you file.

That would make more sense than what I was thinking.