Note: ReplayPolo is a certified 501c3 organization under IRS regulations. Horse donations and financial contributions may be tax-deductible. Check with your accountant or other tax/financial expert to determine whether your specific situation qualifies. The discussion that follows is meant to help you understand possible tax-deductibility considerations and possibilities only.
How Tax Deductibility Works.
Generally speaking, the donation of a horse to ReplayPolo is tax deductible, as is any financial contribution to support care, training and the other horse-repurposing activities of ReplayPolo. (As stated, this is governed by facts and circumstances associated with your particular situation.)
For example, the donation of a horse valued at $5,000 might generate a net $1,000 tax reduction for an individual or company in the 20% incremental tax category. A $5,000 contribution accompanying that donation to support the care and maintenance of the horse similarly could generate a separate 1,000 tax reduction for that same individual or company.
In assessing your potential donation and/or financial contribution, consider the calculation associated with the scenario described above:
|Financial (Cash) Contribution:||$5,000|
|Tax Deduction for that Contribution:||$5,000.00 x .20 rate ($1,000)|
|Tax Deduction for the Donated Horse:||$5,000.00 x .20 rate ($1,000)|
|Net Cost of Donation and Contribution:||$3,000|
The tax-related aspects of the transaction can significantly reduce the net after-tax cost while making it possible for ReplayPolo to work with these deserving horses and make them available to others who want and need them.
Valuing Your Horse for Donation.
The donor is solely and exclusively responsible for assessing the value of a horse donated to Replay Polo. The Internal Revenue Service requires that each donor complete IRS Form 8283 and submit it with one’s annual tax return for any horse that is donated to ReplayPolo that has a $500 value or more. For any horse that has a claimed value in excess of $5,000, the IRS requires that the value be substantiated by an independent, written appraisal which should be completed before your donation (that is, while the horse is still in your care, custody and/or control). Please speak with your own tax professional as Replay Polo cannot provide specific instruction to you on what your horse’s value may be. Here are the Instructions for completing IRS Form 8283. https://www.irs.gov/pub/irs-pdf/i8283.pdf
Subsequent Use and Valuation of the Horse.
When you donate a horse to ReplayPolo, you transfer ownership and all further obligations associated with it. (ReplayPolo must require that you warrant that there are no existing liens, judgments or other ongoing financial obligations against your donation.) Please also note that whatever value you place on your horse at the time it is donated does not necessarily have any bearing on the adoption fee, if any, that ReplayPolo may charge an individual, business or other organization that wishes to adopt the horse in the future. The two are separate and independent evaluations and ReplayPolo has no obligation to discuss or share with the donor what the adoption fee may be or when the horse may be put up for adoption. ReplayPolo considers multiple factors in considering adoption situations and fees including, but are not limited to, the horse’s age, health, soundness, size, mental capacity for a particular new career, training and maintenance costs, and how long it took to have a specific horse adopted.
Cash donations made in conjunction with the donation are critical to ensuring that each horse receives the requisite care and training it needs in order to transition to a new career and new home.
Use the appropriate form under the Forms tab to make a donation, contribution or other inquiry.