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Sep 4, 2024
10:59:20am
Narfin'Coug Playmaker
The key question is did you (or will you) claim the charitable contribution?
If so, for what value? 😅 Maybe this is a good tax planning strategy... People often inflate the value of the contribution from what I've seen, then you turn around and buy it back for less than the inflated value, and you just bought yourself some deduction potentially.

Example...

Donate cord (or whatever) "worth" $10.00
Buy back item for $2.00
Deduct contribution of $10.00
Tax savings at 22% rate of $2.20
Purchased tax deduction of $0.20

Expand that to a basket of goods donated to DI worth $500 or less so you don't have additional reporting and this can add up. Haha.
Narfin'Coug
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Narfin'Coug
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Sep 18, 2024
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