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Can you write off a wine gift?

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Covert

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Can you write off a wine gift?

by Covert » Fri Jan 07, 2011 2:16 pm

A few years ago when I apparently got on some kind of frugality kick, and was also thinking that it didn’t make sense to drink fine wine on the back deck at the lake in the wind and heat, I bought several cases of low-level cru bourgeois and petit chateaux. Over time we found ourselves pouring the bottles down the drain and opening better bottles, frequently citing the old mantra that life is too short.

Also, my wife said that the times she feels like drinking something other than fine Bordeaux she likes to drink something else entirely, like Burgundy or even a California Pinot Noir.

I got a bright idea of holding a Bordeaux party in Albany’s Washington Park for the hobos (you have to read Kennedy’s Ironweed to understand this pipeau dream), but my wife said she would try to commit me if I did that. I would get something out of that because I know the hobos would love the hell out of the gesture and it would be a fun party.

I am not ready yet to just give the perfectly good bottles away to strangers, but close. Does anybody know of a way to give them away and write the gift off on taxes?
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Last edited by Covert on Fri Jan 07, 2011 2:18 pm, edited 1 time in total.
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Re: Can you write off a wine gift?

by David M. Bueker » Fri Jan 07, 2011 2:18 pm

If an organization were having something like a charity auction you could donate them.
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Re: Can you write off a wine gift?

by Jon Peterson » Fri Jan 07, 2011 2:40 pm

David M. Bueker wrote:If an organization were having something like a charity auction you could donate them.


That's what I was thinking, too, David. Of course, one can only write off the original cost, not their worth today.
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Re: Can you write off a wine gift?

by Kelly Young » Fri Jan 07, 2011 3:12 pm

I work for a NFP and we would issue you a receipt for the gift at Fair Market Value. For something complex like valuable fine wine, as an NFP officer taking the gift I'd probably have some sort of back up of the FMV for my records. It's exactly the same as if you donated property or securities to a 501(c)3, the value of the gift is the value when given.

http://www.irs.gov/businesses/small/art ... ,00.html#8
Last edited by Kelly Young on Fri Jan 07, 2011 3:15 pm, edited 1 time in total.
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Re: Can you write off a wine gift?

by Covert » Fri Jan 07, 2011 3:14 pm

Jon Peterson wrote:
David M. Bueker wrote:If an organization were having something like a charity auction you could donate them.


That's what I was thinking, too, David. Of course, one can only write off the original cost, not their worth today.


Thanks to you and David for this. I will check this option out.
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Re: Can you write off a wine gift?

by Kelly Young » Fri Jan 07, 2011 3:22 pm

You'd need to get to know this too:

http://www.irs.gov/pub/irs-pdf/f8283.pdf
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Re: Can you write off a wine gift?

by Bill Hooper » Fri Jan 07, 2011 3:37 pm

Tax-write off? To hell with all of that. My vote is for the hobos.

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Re: Can you write off a wine gift?

by Dale Williams » Fri Jan 07, 2011 4:35 pm

For an appreciated collectible, you can only declare FMV if the non-profit uses it for their exempt purposes. So, if one donated wine to the CIA in Hyde Park or the Cornell restaurant/hotel school, and they used it for training students, you should be able to declare FMV. If however the donee sells it during a fundraiser, you are only able to declare your cost.
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Re: Can you write off a wine gift?

by Jon Peterson » Fri Jan 07, 2011 5:10 pm

By the way, Covert - (and you knew this was coming) I am a hobo. Please PM me for my home address and I'll pay shipping.
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Re: Can you write off a wine gift?

by Sam Platt » Fri Jan 07, 2011 5:46 pm

Covert wrote: got a bright idea of holding a Bordeaux party in Albany’s Washington Park for the hobos (you have to read Kennedy’s Ironweed to understand this pipeau dream), but my wife said she would try to commit me if I did that.

Winos and cases of free wine. What could go wrong?

Ironweed is a great book by the way. I hated the movie.
Sam

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Re: Can you write off a wine gift?

by Kelly Young » Fri Jan 07, 2011 6:36 pm

Dale is correct on the exclusion for purpose (nice deeper reading of the tax code sir).

So Hobos it is. I'm under the third bench to the left whenever you get around to this.
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Re: Can you write off a wine gift?

by Bill Spohn » Fri Jan 07, 2011 7:32 pm

Why not just cook with it?
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Re: Can you write off a wine gift?

by Daniel Rogov » Fri Jan 07, 2011 7:48 pm

My vote goes to the hobos. Could be a memorable experience.
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Re: Can you write off a wine gift?

by Covert » Sat Jan 08, 2011 8:28 am

Thanks to you all; and Rogov, Sam and Jon specifically for supporting the original vision. I think if I just set up a bench under Moses and offer free Bordeaux until it is gone, I don't have to target the hobos per se as far as my wife is concerned. I can surreptitiously put out the word to the hobo community so that they are well represented.

Lynn says giving away wine to winos is like distributing free cigarettes; it's a health issue with her, not a moral one. But I remember how Thomas Jefferson said that if you were to introduce fine wine to alcoholics, many of them would give up power drinking for the additional spiritual benefit of the good stuff, and thus drink less. I know this begs the question of how the hobos could achieve an encore. Maybe I could have a big sign asking others to follow suit.

Re Ironweed, I very much agree with Sam about the book being better than the movie, which I didn’t even see (so how could I say that?). Jack Nicholson was so miscast for the part that I couldn’t bring myself to look. William Kennedy is my neighbor, by the way; but I never made the effort to get to know him; he would have no reason to want to know me. My next-door neighbor, however, who is an aspiring playwright, had dinner with the Pulitzer Prize winning author recently and told me that Kennedy said his favorite movie is Run Lola Run, which might have been mine, too. That’s still not enough basis to ring his doorbell, though.
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Re: Can you write off a wine gift?

by Drew Hall » Sat Jan 08, 2011 8:45 am

And then there's the time when my sister and her church, in the late fall, proceeded to an area near central Baltimore, near the prison and under I83, which is called the Jones Falls Expressway. This area is full of "Hobos" (homeless) as they live under the shelter of the Expressway. The church folks and my sister set up five or so tables offering coats and winter clothing and food and when the word got out they were "bum rushed" by the Hobos who knocked over the tables, pushing and fighting each other for the booty. Some of the Hobos and church folk were injured in this display of good will to men. Covert, you might want to rethink your idea....just saying.

Drew
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Re: Can you write off a wine gift?

by Daniel Rogov » Sat Jan 08, 2011 9:31 am

With re hobos or more-or-less in French les clochards, when I go fishing I invariably take a bottle of wine with me (no glasses, just the bottle and a corkscrew) and some of my most memorable early morning expeditions in the Seine in Paris or in the Ill in Alsace have been when I was joined by one, two or three clochards wanting to share in the bottle. Never catch many fish on those expeditions but the water, the wine and indeed the bums make them highly enjoyable.

Fewer bums but much better fishing in the Rhine on the stretch between Weisbaden and Koln.

Best
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Re: Can you write off a wine gift?

by Kelly Young » Sat Jan 08, 2011 11:02 am

http://www.youtube.com/watch?v=wMNnrNjlyV0

You will need to activate the CC button to truly appreciate (unless your knowledge of Japanese is better than mine).
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Re: Can you write off a wine gift?

by Covert » Sat Jan 08, 2011 1:45 pm

I told this story on WLDG several years ago when it happened. I had attended the weekend wedding bash of the sister of the lady who now runs Saratoga Springs’ The Wine Bar on Broadway. My good friend, her father, designed The Wine Bar after his notion of the perfect restaurant and opened the place a few days after the wedding. Drinking for the entire weekend, which ended at about 2:00 a.m. Sunday morning, the idea occurred to the bartender and was quickly seconded by me, and a couple of couples connected with the family, to “open” and christen The Wine Bar that morning on its front steps. The bartender brought out a few bottles of Champagne and wine and commenced a party.

Not long into it, eyes appeared out of the night, like jackals around a carcass, Saratoga’s homeless contingent. All of us decided it would be a great idea to share, so we passed out stems and poured heartily. The hobos were grateful and very well behaved; and the event remains warm in my heart.

We had one hell of a scare, though, going home. Around four, when I could see the glow of the new day between the buildings, I figured enough was enough. Lynn was more affected than I was and I remember pulling her up like a dog on a leash to prevent her from squatting a pee in the street as we crossed looking for the car. Not sure what number I would have posted on a breathalyzer, but it would have been formidable.

The drive south on Route Nine past the Saratoga baths and Gideon Putnam Resort was serene enough, until I crested the rise just before the Northway entrance. Blazing stadium lights lined both sides of the road, and next to a breathalyzer van a queue of paddy wagons waited for the next trip to jail, like cabs at LaGuardia, and there were more cops everywhere than I thought existed in the county. Coned runways had been set up so that suspected inebriates could have their own little staging areas to converse with their own cops.

I screamed, “F---!, were f---ed!” which managed to wake Lynn who had passed out the second she hit the passenger seat. Lynn calmly instructed, “Just handle it!” “Handle it?” I protested, “Handle it? - I'm drunk!” A cop motioned me into my little lane, walked alongside the car and gestured for me to roll down my window.

Driving Lynn’s car, I was not automatic with the window buttons, so a back window on the opposite side went down first, then Lynn’s window, and finally mine, as the cop waited akimbo.

“Where are you coming from?” “Canfield Casino, we were at a wedding.” “Did you have anything to drink?”

My brother, who is a trial attorney, had insisted if I ever got in that position to say no, no matter how obvious the contrary might be, because as soon as you admit it they can put you through the tests. Nevertheless, I said “Yes, but it’s funny you ask because I didn’t drink anything all night, knowing I had to drive, until the very end when I couldn’t stand it anymore being the only teetotaler and I drank three whiskeys.” I knew he would be able to smell alcohol, even though I had aired the car out pretty good with the window display, and that would have been enough cause to take it further.

“Do you know your alphabet?” I remembered a cognitive test I had taken once where I had to recite it backwards and started to practice in my head – Z-Y-X… and asked, “Do you mean forward?” “Yes, let's hear it.” So I started and thought not to sing L-M-N-O-P, and then I was silent, not really knowing if I had finished to Z or stopped after P. My heart was pounding. I guess the fact that I look up words all the time helps me know the alphabet even if I don’t know my name. “Go ahead,” he said.

In about fifty yards, I don’t know who whooped the first word, but we shouted in ecstatic unison, “IF NOT US, -- WHOOO!!!?” Everybody was a bum that night.
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Re: Can you write off a wine gift?

by Jenise » Sat Jan 08, 2011 2:27 pm

Covert, I laughed out loud while reading your story and then had to read the whole thing to Bob. Enjoyed it tremendously--you're a great storyteller.
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Re: Can you write off a wine gift?

by Covert » Sat Jan 08, 2011 3:04 pm

Jenise wrote:Covert, I laughed out loud while reading your story and then had to read the whole thing to Bob. Enjoyed it tremendously--you're a great storyteller.


Thanks a lot, Jenise. You are a great storyteller, too; I love the Alaska and Vancouver stories; but you appear to be in a quiescent period. I am Johnny on the spot with these postings today because we got sort of snowed in. We could have gone to camp, but would have had to shovel us in arriving back on Sunday night, as well as shovel up north. It is so much easier to start the snowblower in the garage and get it all over with in the early part of the weekend. Wine tastes good here as well.
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Re: Can you write off a wine gift?

by Mark S » Sat Jan 08, 2011 11:24 pm

Screw the tax code. Save them for sobriety checkpoints. The cops will LUV you for your generosity. :lol:

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