Pinga
Room for All
@Carolla , I am going to inquire specifically on the cottage auction, but the scenario you outlined is explained in the link.
The buyer should not get a receipt.
Our charity held an auction where various items were being auctioned to raise funds for our charitable programs. The auction was being handled by an auction house. Would the buyers be eligible for an official receipt for income tax purposes?
Generally, a receipt should not be issued to the buyer because the price paid is considered to be its actual value in circumstances typically surrounding a sale to the highest bidder, meaning that no gift was made. However, there can be certain situations where it can be established that the buyer otherwise knowingly paid more than the item was worth, and therefore made a gift.
The buyer should not get a receipt.
Our charity held an auction where various items were being auctioned to raise funds for our charitable programs. The auction was being handled by an auction house. Would the buyers be eligible for an official receipt for income tax purposes?
Generally, a receipt should not be issued to the buyer because the price paid is considered to be its actual value in circumstances typically surrounding a sale to the highest bidder, meaning that no gift was made. However, there can be certain situations where it can be established that the buyer otherwise knowingly paid more than the item was worth, and therefore made a gift.