USA Charitable Donation for discounted goods

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Aloha, I am the CFO for a non profit. An individual has a piece of equipment which he has valued at $5000,which he has offered to us in exchange for $500 and a tax deduction of $4500. Is there any way to claim a tax deduction when money is exchanged?
 

kirby

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You are not in the business of doing valuations of equipment. So you can only 1) acknowledge in letter the receipt of (describe equipment) and 2) acknowledge your cash out to them of $500 and that's it. It is up to the donor to prove to IRS the value of the equipment, not you.
 
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Also his deduction would be limited to his basis in the equipment, so if basis is zero no deduction and he has reportable gain on the sale.
 

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