FundSvcs Community

Hmmm.

I'm used to thinking of a partial interest as something that the donee will have the use of, but not own, like, say, the use of a hotel room, or office space, or a car.

In this case (assuming that the donor is the company that is providing the service, or its owner, or the like), is it not true that the university is receiving-in the form of a gift certificate-the property of the oil and oil filter (I assume), valued at $25, and the service of performing the service, valued, I guess, at $14.99, but which doesn't enter into the calculation of the gift to the university, as it is a service.  I'm not seeing a partial interest; the university, after all, does not have to give the oil and filter back!  (The donor company can probably only claim their deduction as the certificates are redeemed, but that's not our issue.)

Now, from the point of view of the golf tournament participants, they are receiving a benefit with a fair market value at $39.99, which is what they would otherwise have to pay for the oil change, which is independent of the gift value that could be deducted by the donor.  And their deduction is limited by the value of the oil change whether they use the certificates or not, since they've accepted the right to the benefit.

As John says, if the donor is not the company/owner that will be performing the oil change, what they are transferring is their property right in the oil changes, which you could record at their fair market value of $39.99 (and which the donor could deduct at the value of their basis in that property interest, which isn't our problem.) 

Hmmm.

I'm used to thinking of a partial interest as something that the donee will have the use of, but not own, like, say, the use of a hotel room, or office space, or a car.

In this case (assuming that the donor is the company that is providing the service, or its owner, or the like), is it not true that the university is receiving-in the form of a gift certificate-the property of the oil and oil filter (I assume), valued at $25, and the service of performing the service, valued, I guess, at $14.99, but which doesn't enter into the calculation of the gift to the university, as it is a service.  I'm not seeing a partial interest; the university, after all, does not have to give the oil and filter back!  (The donor company can probably only claim their deduction as the certificates are redeemed, but that's not our issue.)

Now, from the point of view of the golf tournament participants, they are receiving a benefit with a fair market value at $39.99, which is what they would otherwise have to pay for the oil change, which is independent of the gift value that could be deducted by the donor.  And their deduction is limited by the value of the oil change whether they use the certificates or not, since they've accepted the right to the benefit.

As John says, if the donor is not the company/owner that will be performing the oil change, what they are transferring is their property right in the oil changes, which you could record at their fair market value of $39.99 (and which the donor could deduct at the value of their basis in that property interest, which isn't our problem.) 

Hmmm.

I'm used to thinking of a partial interest as something that the donee will have the use of, but not own, like, say, the use of a hotel room, or office space, or a car.

In this case (assuming that the donor is the company that is providing the service, or its owner, or the like), is it not true that the university is receiving-in the form of a gift certificate-the property of the oil and oil filter (I assume), valued at $25, and the service of performing the service, valued, I guess, at $14.99, but which doesn't enter into the calculation of the gift to the university, as it is a service.  I'm not seeing a partial interest; the university, after all, does not have to give the oil and filter back!  (The donor company can probably only claim their deduction as the certificates are redeemed, but that's not our issue.)

Now, from the point of view of the golf tournament participants, they are receiving a benefit with a fair market value at $39.99, which is what they would otherwise have to pay for the oil change, which is independent of the gift value that could be deducted by the donor.  And their deduction is limited by the value of the oil change whether they use the certificates or not, since they've accepted the right to the benefit.

As John says, if the donor is not the company/owner that will be performing the oil change, what they are transferring is their property right in the oil changes, which you could record at their fair market value of $39.99 (and which the donor could deduct at the value of their basis in that property interest, which isn't our problem.)