Donation Value of Ford 8n Tractor

An individual donated a perfectly restored Ford 8N tractor to the museum i affiliated with. The individual spent a lot of money on restoring it and is looking for a non-profit donation on his tax return. We're using the tractor so their is no resale.

What is the best method to value this for Tax purposes. E-Bay has a lot of un-sold tractors and know a lot of people have an ax to grind with them so their values may not reflect the ture value.

Has anyone had experience with appraisers? or is their another source to value the tractor from that won't get this person in trouble?

It is nearly impossible to place a dollar value on a tractor as old as an 8n. You can research the actual sale price of those tractors all day long and at the end of the day you will still be confused. The best you can hope for is a "guesstimate". I will "guesstimate" the value at $3,000 to $3,500

In case you did not know it is his responsibility to set a value not yours.

At the museum where I work we did that last Spring for someone here in Ma.
In the letter on thanks, we referred to his 8n as a restored tractor and set the value is $4500. I talked to him the other day and he said the deduction was excepted by the IRS.

N Complete sells commercially remanufactured N tractors for around $9500. I don't which would be worth more- restored or remanufactured.
N Complete

I used to work at a nonprofit, religious organization. Was told the nonprofit does not set the value-the donor does! Greg

Better not try that, then, if it was EXCEPTED by the IRS!

We've donated lots of stuff to non-profits (never a museum, though); they always set the value and send us a letter after evaluating it.

The donor probably expects an inflated price.They usually have more in an item than it's worth and donating it is the only way they can come out on the deal.

I am the treasurer of a 501 C3 organization, and we have accepted donations and provided tax value letters. As I understand what we have done, it makes no tax differences to the 501C3 whether the value is high or low. If your donor has put a lot of money (and time) into a great restoration that your museum values, then give him a high valuation. Of course your interest is to not commit any kind of fraud, but you can keep on safe turf by obtaining the sale prices of very well restored similar model tractors from a reliable business such as external_link. E-Bay has no place here, many things are mis-described or deliberately misrepresented. I have seen stuff with insane high prices as starting bid, and they never sell, and some good stuff sells way too cheap, and my experience is that the picture is always much better than the item I have just bought.

The guys who have said that the donor determines the value are partially right. This is easily done with commonly donated things like clothing or furniture items, and supported by a part of the Turbo Tax program. But the IRS has come down heavy on the value determined by donor for donated cars and other possible high ticket items. It is now determined by the sale price achieved at auction of the donated item, and that can be pitifully low, or value is determined by an established appraisor. I suspect that your museum has insurance on the valuable contents. You might ask your insurance company to recommend a knowledgible appraisor. On early farm equipment I own, I have met with the insurance rep and told him what I value the item at, what I expect to get if it is a total loss. The item is then listed and its value has been determined by mutual agreement.

As this is very important to your donor, I would want to include him in the valuation discussion. Of course you want to give him every bit of value that can be supported.

Good Luck,

Paul in MN