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USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1236
Experience:  US Taxation specialist.
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This question involves donating a former show horse to a nonprofit

Resolved Question:

This question involves donating a former show horse to a nonprofit or university for a tax write-off. Is there an IRS requirement of how long the program or university needs to keep the horse before they can sell it to make sure the donor won't have problems with their writeoff? I found in the IRS rules shown below that the nonprofit has to file Form 8282 if they sell the horse within three years but I have been unable to find out what the repercussions could be to the donor. For example---if you get the horse appraised for $40,000 and then use that amount to get a write-off and then the non-profit sells it before three years for let's say $10,000....what could the repercussions be for the donor?

(Info taken from IRS website) Form 8282
If your organization disposes of property for which it signed a Form 8283 within three years after receiving a contribution, the organization is required to file Form 8282 with the IRS. Form 8282 must be filed within 125 days after the date your organization disposes of the property, and a copy of the form must be provided to the original donor.
Submitted: 4 years ago.
Category: Tax
Expert:  USTaxAdvising replied 4 years ago.

You are absolutely correct, the university must hold the horse for greater than 3 years for there to be no repercussions to the donor.


If the University were to sell the horse after three years, for as you say 10K, then the donor would have to recapture a portion of thier prior year deduction taken (i.e. declare taxable income).


Note that there are two exceptions but I don't believe that they will apply to horses: see below on page 3:


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