Super Couponing
Apr 15, 2011 | 7:47 am
#61
Join Date: Dec 2010
Location: STL
Programs: Back to lowly AA Gold (1.8 MM); Hilton Gold; Hyatt Plat
Posts: 334
You are both correct and incorrect. Stock and other capital assets are handled differently than simple product donations.
For a donation of groceries, you are allowed to take the Fair Market Value UP TO your cost basis - generally what you paid at the store.
So if you donate $500 worth of groceries, but you only paid $50, your allowable donation is generally $50. Regardless of what receipt you get from the charity, it is your responsibility under tax code to substantiate YOUR cost basis in the groceries, by keeping the receipt of your PURCHASE. That is what will generally be allowed in an audit.
(That same receipt will also generally substantiate the Fair Market Value cap, because it will show a retail price for which the product was actually sold around the time of your donation.)
Stock you've held for less than a year generally follows a similar rule. If you paid 10K for stock that appreciated to 100K within a few months, your deduction would generally be capped at 10K.
There are special rules for capital assets, such as stock, held more than a year. In those cases you may be able to claim the appreciated (100K) value.
But the net of it is - for super couponing, if you donate to a food pantry, you're only allowed your actual cash cost.
Details are in IRS Publication 526.
For a donation of groceries, you are allowed to take the Fair Market Value UP TO your cost basis - generally what you paid at the store.
So if you donate $500 worth of groceries, but you only paid $50, your allowable donation is generally $50. Regardless of what receipt you get from the charity, it is your responsibility under tax code to substantiate YOUR cost basis in the groceries, by keeping the receipt of your PURCHASE. That is what will generally be allowed in an audit.
(That same receipt will also generally substantiate the Fair Market Value cap, because it will show a retail price for which the product was actually sold around the time of your donation.)
Stock you've held for less than a year generally follows a similar rule. If you paid 10K for stock that appreciated to 100K within a few months, your deduction would generally be capped at 10K.
There are special rules for capital assets, such as stock, held more than a year. In those cases you may be able to claim the appreciated (100K) value.
But the net of it is - for super couponing, if you donate to a food pantry, you're only allowed your actual cash cost.
Details are in IRS Publication 526.
I personally found some value in "super" couponing and then donating to a local food bank. First - I enjoyed the game of finding the best values (just as I do grabbing air miles deals) and second- it felt good knowing that I provided some healthy staples to those who could really use it. In the course of thirty days I paid 197.00 (which is what I reported as the actual donation to the IRS) but donated $623.85 worth of food. My game rules were:
1. No unhealthy crap. Although I may have stretched that rule with some Fiber One and granola bars.
2. No drives over 5 miles to get the deals
3. Would I have legitimately used these products myself?
The final product mix was made up of canned beans and soups, tea, Peanut Butter, flour, Bisquick, canned tuna, rice, whole wheat & regular pastas, salad dressings, pasta sauces, hot sauces, and a massive amount of unsweetened cereal.
The food bank loved the selection. Thanks to the Girl Scouts "April Showers" campaign this week, I now realize I should add personal hygiene products to the mix next time.
Apr 15, 2011 | 10:30 am
#62
Join Date: Jan 2010
Location: STL
Programs: AA mostly
Posts: 150
Buy one get one free with a buy one get one free coupon shouldn't result in 4 free items, it should result in 3 free items though.
Think about it, you buy one item, and the sale is that you get one free. That's one free. You then buy another one, and get another one for free. That's now two free. You've paid for 2 items, thus allowing you to now use your buy one get one free coupon. Apply that, and you've paid for one and the other three were free.
Think about it, you buy one item, and the sale is that you get one free. That's one free. You then buy another one, and get another one for free. That's now two free. You've paid for 2 items, thus allowing you to now use your buy one get one free coupon. Apply that, and you've paid for one and the other three were free.
Actually you're both wrong. BIGI sale with a BIGI coupon only results in 2 free items. You purchase 2 items - the store gives you one for free as part of their deal. Your coupon gives you the second item for free. The coupon still attaches the one the store gave you for free as the one you 'bought'. This is perfectly legal, as the coupon represents payment for an item. Some stores probably won't allow it, but Target, Walmart, CVS, and Walgreen's all do. The store will be reimbursed in full for one of those items.
I get frustrated when people assume that couponers are 'scamming' the stores or manufacturers just because they take advantage of store sales when using the coupons. I also get frustrated knowing that there ARE people out there who are abusing the coupons by making photocopies or trying to use them in the wrong way. I find that the majority of store employees are not aware of their own coupon policy, and I have had to explain it to them many times (print-out in hand) so they understand what they're supposed to do. But I NEVER use coupons in a way that I'm not supposed to, nor do any of the women in the 'coupon community' that I communicate with online. We frown upon it.
Apr 15, 2011 | 10:38 am
#63
Join Date: Sep 2003
Location: LAS
Posts: 1,323
. . . I can see couponing to save money on things you're actually going to use in the near future - but this level is ridiculous.
If it's a hobby, well, if it were my hobby, I would stop at a food bank on my way home from the grocery and donate all my extras. I wouldn't stock it in my house to give away once a year. For no other reason - people need these items all year long.
If it's a hobby, well, if it were my hobby, I would stop at a food bank on my way home from the grocery and donate all my extras. I wouldn't stock it in my house to give away once a year. For no other reason - people need these items all year long.
One couponer on the show stated that she LOVES to look at her stocked shelves of items. She buiilt bookshelves in her bedroom to store it because it wouldn't all fit in her garage and basement.
Apr 15, 2011 | 10:57 am
#64
Join Date: Nov 2007
Location: DCAs in walking distance
Programs: UA Million miler
Posts: 384
The extreme couponers featured in the TLC show DON'T give it away. If they buy 78 bottles of mustard for 10 cents each, they KEEP all 78 bottles, even if it means storing them underneath their children's beds. (actually, I think it was barbeque sauce under the beds).
One couponer on the show stated that she LOVES to look at her stocked shelves of items. She buiilt bookshelves in her bedroom to store it because it wouldn't all fit in her garage and basement.
One couponer on the show stated that she LOVES to look at her stocked shelves of items. She buiilt bookshelves in her bedroom to store it because it wouldn't all fit in her garage and basement.
Apr 15, 2011 | 11:15 am
#66
A FlyerTalk Posting Legend
Join Date: Jun 2004
Location: Either at the shooting range or anywhere good beer can be found...
Posts: 52,796
Actually you're both wrong. BIGI sale with a BIGI coupon only results in 2 free items. You purchase 2 items - the store gives you one for free as part of their deal. Your coupon gives you the second item for free. The coupon still attaches the one the store gave you for free as the one you 'bought'. This is perfectly legal, as the coupon represents payment for an item. Some stores probably won't allow it, but Target, Walmart, CVS, and Walgreen's all do. The store will be reimbursed in full for one of those items.
I get frustrated when people assume that couponers are 'scamming' the stores or manufacturers just because they take advantage of store sales when using the coupons. I also get frustrated knowing that there ARE people out there who are abusing the coupons by making photocopies or trying to use them in the wrong way. I find that the majority of store employees are not aware of their own coupon policy, and I have had to explain it to them many times (print-out in hand) so they understand what they're supposed to do. But I NEVER use coupons in a way that I'm not supposed to, nor do any of the women in the 'coupon community' that I communicate with online. We frown upon it.
I get frustrated when people assume that couponers are 'scamming' the stores or manufacturers just because they take advantage of store sales when using the coupons. I also get frustrated knowing that there ARE people out there who are abusing the coupons by making photocopies or trying to use them in the wrong way. I find that the majority of store employees are not aware of their own coupon policy, and I have had to explain it to them many times (print-out in hand) so they understand what they're supposed to do. But I NEVER use coupons in a way that I'm not supposed to, nor do any of the women in the 'coupon community' that I communicate with online. We frown upon it.
Apr 15, 2011 | 11:15 am
#67
Join Date: Jan 2010
Location: STL
Programs: AA mostly
Posts: 150
The extreme couponers featured in the TLC show DON'T give it away. If they buy 78 bottles of mustard for 10 cents each, they KEEP all 78 bottles, even if it means storing them underneath their children's beds. (actually, I think it was barbeque sauce under the beds).
One couponer on the show stated that she LOVES to look at her stocked shelves of items. She buiilt bookshelves in her bedroom to store it because it wouldn't all fit in her garage and basement.
One couponer on the show stated that she LOVES to look at her stocked shelves of items. She buiilt bookshelves in her bedroom to store it because it wouldn't all fit in her garage and basement.
Apr 15, 2011 | 11:16 am
#68
In Memoriam
Join Date: May 2001
Location: Southern California
Programs: Hertz 5 star, Priceline Hotel bidder. AA PLT, 1MM.
Posts: 2,910
Back 10-12 yrs ago, I used coupons a fair amount. I had a very decent renter (1 rental at the time) and I would give the excess to her. With her & 4 kids, they were quite appreciative. I used coupons alot until 5 yrs ago. My wife is more particular on what she uses (likes Trader Joes, etc that don't have coupons). I don't take the time for that like I used to.
Whatever my renters didn't use, they gave away. They got alot of very expensive goods (toothpaste, laundry soap, cereal, etc) that cost me very little. I had plenty for myself. I worked 2nd shift and I commuted 57 miles o/w to work so the stores at 11:00PM were not busy.
I discovered FT in 2001 and didn't spend as much time couponing. The couponing skills came in handy in finding deals on airfare, etc. I graduated to things with larger rewards. I like the nice large bonuses doing credit cards.
One recent example was my sister & brother-in-law wanted to go to Australia/New Zealand. They know I am aware of the "deals".
I told them to each apply for 2 Citi 75K cards each (I did the applications for them as they do stuff for me) and got instant approvals. For 30 or so minutes of my time, they ultimately ended up with 300K total AA miles. For 2 credit inquiries each & 3K each person spend (on stuff they would normally buy), they got their miles. 150K took care of their Australia/NZ trip & they had 150K left for other trips. Great use of my time. ^
Whatever my renters didn't use, they gave away. They got alot of very expensive goods (toothpaste, laundry soap, cereal, etc) that cost me very little. I had plenty for myself. I worked 2nd shift and I commuted 57 miles o/w to work so the stores at 11:00PM were not busy.
I discovered FT in 2001 and didn't spend as much time couponing. The couponing skills came in handy in finding deals on airfare, etc. I graduated to things with larger rewards. I like the nice large bonuses doing credit cards.
One recent example was my sister & brother-in-law wanted to go to Australia/New Zealand. They know I am aware of the "deals".
I told them to each apply for 2 Citi 75K cards each (I did the applications for them as they do stuff for me) and got instant approvals. For 30 or so minutes of my time, they ultimately ended up with 300K total AA miles. For 2 credit inquiries each & 3K each person spend (on stuff they would normally buy), they got their miles. 150K took care of their Australia/NZ trip & they had 150K left for other trips. Great use of my time. ^
Apr 15, 2011 | 11:41 am
#69
Join Date: Jan 2010
Location: STL
Programs: AA mostly
Posts: 150
Similarly, when I buy toothpaste that is on sale for $1 and use a $1 off coupon to purchase it, I am not trying to scam the store to get something for free, I am using the coupon as a form of payment, for which the store will be fully reimbursed.
Apr 15, 2011 | 11:48 am
#70
A FlyerTalk Posting Legend
Join Date: Jun 2004
Location: Either at the shooting range or anywhere good beer can be found...
Posts: 52,796
A coupon is a form of payment, so you are purchasing one of the items using the coupon. The store is reimbursed for the full value of the item.
Similarly, when I buy toothpaste that is on sale for $1 and use a $1 off coupon to purchase it, I am not trying to scam the store to get something for free, I am using the coupon as a form of payment, for which the store will be fully reimbursed.
Similarly, when I buy toothpaste that is on sale for $1 and use a $1 off coupon to purchase it, I am not trying to scam the store to get something for free, I am using the coupon as a form of payment, for which the store will be fully reimbursed.
YMMV--you do it how you do it, where you get 2 free items, and don't buy anything, I'll do it my way and get 3 free items where I buy 1. Personal preference there.