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Question
How do I calculate the taxable value of an item someone bid on and won at a gala held by my nonprofit?
AI accountant’s answer:
To calculate the taxable value of an item won at a gala held by a nonprofit, you must first determine the fair market value (FMV) of the item. The FMV is the price at which the property would change hands between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of all the relevant facts. Once you have determined the FMV of the item, compare it to the winning bid amount. If the winning bid is more than the item's FMV, the difference between the winning bid and the FMV is considered a charitable contribution, which may be tax-deductible for the bidder, subject to the applicable deduction limits. The portion of the winning bid that represents the FMV of the item is considered the taxable value, as the bidder has essentially paid the retail value for the item. For example, if the FMV of an item is $500, and the winning bid is $700, the taxable value of the item would be $500. The remaining $200 may be considered a charitable contribution by the bidder. Keep in mind that the taxable value of the item should be reported to the winning bidder, and they should consult a tax professional for specific advice on their tax situation.
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Isaiah McCoy, CPA
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Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

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Ask an AI Accountant

A free tool by

Question
This is some text inside of a div block.
AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started