Posted by John Behle on April 05, 2000 at 13:25:00:
The tax opinions I’ve had are that the note can be deducted for the face value. It could always be challenged if the terms of the note are extremely soft, but then again most things can be challenged.
Few accountants could even market value a note.
Question especially for John or Lonnie re:Donating notes to Charity - Posted by Larry
Posted by Larry on March 25, 2000 at 20:53:55:
Does anyone know about/have experience with donating notes to Charity, and what the tax advatages of doing so are? I understand how donating stocks or real estate with significant capital gains can offer extra tax advantages, but do the same rules apply to donating paper? I’ve heard differing opinions, even from CPAs, on the matter and would appreciate hearing how it works. Specifically, I’d like to know what the value of such a gift is. With stocks or real estate, you can deduct the current fair market value, even if you paid less than FMV for it. In addition, you get the added benefit of avoiding capital gains tax on the stocks or property. How would they figure FMV of a note? TIA