The threshold is $600 for a 1099. But a 1099 is not required in a QPQ receipt situation. Only when the benefit exceeds $600 and is given after the receipt is issued (but usually not in the same tax year if you get the original receipt back).
As an aside, regardless of the benefit am out the donor will likely need to be reminded to file an 8283 if the property is worth $500+. And if worth $5,000 the donor will need an appraisal and your signature to claim a deduction.
John
John H. Taylor
919.816.5903 (Cell/Text)
Big Ideas; Small Keyboard
Original Message:
Sent: 8/8/2024 2:52:00 PM
From: Amy Phillips
Subject: RE: Gift in Kind and Quid Pro Quo
John - Maybe a long shot, but if the value of the GiK is substantial and then if the value of benefits being exchanged for this GiK exceeds $900 (if that is still the threshold?) might a 1099 need to be issued?
Just wondering - Amy
Original Message:
Sent: 8/8/2024 1:11:00 PM
From: John Taylor
Subject: RE: Gift in Kind and Quid Pro Quo
Sure it is a thing - although an irregular thing.
Your receipt reflects a description of what was given as normal. Then add a sentence like, "In exchange you were given a widget valued at $NNN. Please reduce your tax deduction by this amount."
I just made that up but you get the idea.
John
John H. Taylor
919.816.5903 (Cell/Text)
Big Ideas; Small Keyboard
Original Message:
Sent: 8/8/2024 12:54:00 PM
From: Jen Dittrich
Subject: Gift in Kind and Quid Pro Quo
I am hoping you can help me out. I am experiencing something I have never encountered before and am unsure if it is even doable. I was asked to enter a Gift in Kind that has a Quid Pro Quo value on it. Is this even a thing? Has anyone else ever experienced this? How did you record and receipt it?
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Jen Dittrich
Point Park University
jdittrich@pointpark.edu
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