If a person pays $11,000 at a fundraising event for an auction item with market value of $2,400 they are not entitled to any tax deduction as the market value is more than 20% of the amount they paid for the item?
Ah yes, see what you mean. This link is informative. (I guess you have read it before)
Valuing the minor benefit | Australian Taxation Office
This example in the link would mean your donation would not be tax deductible
"Nina successfully bids $1,000 for a football signed by a high-profile football team. The DGR values similar items at $550 on the sports memorabilia market. The market value of the football is $550, however Nina cannot claim a deduction as the value of the benefit she received ($550) in return for her contribution ($1,000) exceeds both $150 and 20% of the value of her contribution."
In your case the value of the benefit is $2,400 and the value of the contribution is $11,000. The value of the benefit exceeds $150 and is 21.8 % of the value of the contribution. So the donation is not tax deductible.
Yes, sorry about that. How annoying for the donor.
Should be able to claim the payment less the market value of the item. ($8,600)
See link and example 3
Minor benefits | Australian Taxation Office
Hi Taxduck, does it matter that the cost of the item was more than $150, and $2,400 is 22% of the price paid?
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