"Good News!"
"Cash Receipts for $40,000 for Two Donated Horses!"
Did Danny Tell the IRS?
As 3ABN president Danny Shelton begins to cause
legal trouble for Gailon Joy and Robert Pickle,
emails written by Danny surface that could raise the eyebrows of the IRS. Hopefully, this is no indication of
how he has handled the finances of 3ABN.
Just in case you're wondering, we didn't get these emails from Linda.
Linda: "Tax Deductible Receipt & Appraisals Needed for Two Donated Horses"
|
-------- Original Message --------
| From: |
Linda Shelton |
| To: |
Danny Shelton |
| Date: |
Wednesday, April 06, 2005 9:15:42 AM |
|
My accountant tells me that it is required to have an acknowledgement
from ****** that he received the two horses (which I am
claiming as a tax deduction), also the two appraisals of the
horses. I cannot finish my tax returns without these items.
I appreciate your help in these matters.
LS
|
Danny: "I'll Call Today"
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Subject: |
RE: |
| Date: |
Wednesday, April 06, 2005 2:02 PM |
|
LS,
I will call ****** today and try to take care of this. I need them also.
DS
|
Danny: "We'll Each Get Tax Write Offs of $10,000 Each"
It appears that the two horses donated to another ministry are being valued at $10,000 each,
which is at least twice as much as what Danny
himself valued them at just 9 months earlier.
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Date: |
Thursday, April 07, 2005 1:39 AM |
|
I left a phone message to ****** of what we need. He did get
the horses and we will each get two tax write offs for $10,000
@
Mr. Shelton
How did you like my new Kabota 4x4? It has power steering,
a heater and an enclosed cab for winter. It has tail lights and
a horn and even windshield wipers and goes 25 miles per hour!
That's about 7 miles per hour faster than the gator. It has
independant suspension which makes it ride like a dream.
Danny Shelton
|
Danny: "Cash Receipts" for Donated Horses that Just Doubled in Value
It appears below that the two horses worth $20,000 just 14 hours ago are now worth $40,000. 100%
inflation? That's mighty fast.
But why cash receipts? Since when are horses considered cash?
Notice also that Danny appears to admit to doing the same thing with ****** for the 2003 tax year
to the tune of a $20,000 tax deduction, and that he plans on getting a $10,000 cash receipt for a single
donated horse in the 2005 tax year.
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Date: |
Thursday, April 07, 2005 3:14 PM |
|
Ms. Shelton
I tried to call you to explain the horse deductions. I just
remembered that ****** just gave us a donation of $20,000 last
year. It did not mention horses. That is much better than all
the other rig a ma role.
I have no idea if that's even close to spelling that word,
but it seemed to fit.
So, I have left a message that he has not returned yet. Hopefully,
you will just get a tax donation report from his ministry showing
that you gave $20,000 to his ministry. That's the way he chose
to do it.
I should get one too. I guess he's counting it the same as
a cash donation.
Happy Dan
ps. I think he's willing to give us a $10,000 donation for
2005 ($5,000 @), if we donate our black 3 yr. old stud. I can't
really use him to breed any more of our horses or they will all
be the same blood line.
If this is ok with you please let me know in writing and I'll
try to make it happen. He's hurt his foot really bad by kicking
in his stall. I hope it heals ok.
Danny Shelton
|
Danny: How to Reduce Your Tax Bill ... Overnight
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Date: |
Monday, April 11, 2005 4:23 PM |
|
LS
****** says he is overnighting me two cash donation
receipts. One for you for $20,000 and one for me for $20,000.
I'll overnight it to you if you want or you can give it to your
accountant when you want.
If you want me to overnight it to you, then please let me
know.
DS
This is a great blessing to us for him to consider this a
cash donation.
Danny Shelton
|
Linda: "I Need an Appraisal for Those Horses"
|
-------- Original Message --------
| From: |
Linda Shelton |
| To: |
Danny Shelton |
| Subject: |
Re: |
| Date: |
Tuesday, April 12, 2005 5:38:38 PM |
|
Yes, I would appreciate very much the receipt for the horses
ASAP. My accountant says that I really need an appraisal for
the horses as well, but I trust Stephen has all of this handled
correctly.
So... your "managers took a survey and over half would leave
if I came back? And for every person who supports "my sin" there
are ten against it?" and on and on and on... The Bible says
love and hate can't come from the same package. This has been
the story for over a year. I wish I was not so privy to your
trash talk to so many.
You made your choice a long time ago. Period.
the forced out of my home X
|
In case you don't know why an appraisal is needed, IRS rules dictate that if you donate property of a similar
type that is collectively worth more than $5,000, you have to get an appraisal and file Form 8283. Furthermore,
the organization accepting the donation has to meet some special requirements. See a document provided by
United States Pony Clubs, Inc.
entitled, "Donation of Horses."
Were the requirements the same for the tax years in question? We checked IRS Publication 526 for the years
2002,
2003,
2004, and
2005, and
they all read about the same from what we can tell:
Deductions Over $5,000
If you claim a deduction of over $5,000 for a charitable contribution
of one property item or a group of similar property items, you
must have the acknowledgement and the written records described
under Deductions Over $500 But Not Over $5,000. In figuring whether
your deduction is over $5,000, combine your claimed deductions
for all similar items donated to any charitable organization
during the year.
Generally, you must also obtain a qualified written appraisal
of the donated property from a qualified appraiser. See Deductions
of More Than $5,000 in Publication 561 for more information.
...
Deduction over $5,000 for one item. You must complete Section
B of Form 8283 for each item or group of items for which you
claim a deduction of over $5,000. ...
In figuring whether your deduction is over $5,000, combine the
claimed deductions for all similar items donated to any charitable
organization during the year. The organization that received
the property must complete and sign Part IV of Section B.
(IRS Pub. 526 for years
2002,
2003,
2004, and
2005)
|
So how long has the IRS been requiring this sort of thing, and the filing of Form 8283?
According to The CPA Journal's 1994 online article,
"Appraising personal property and fine arts",
since 1985 or so, back in the days when
3ABN first got started:
|
3. Cost Basis, Date, and Manner of Acquisition. While essentially
the same as the provenance of the piece, this information is
required for the gifting of property and the correct filing of
Form 8283 (Non-cash Charitable Contributions.) This form was
first issued in February 1985, with the latest revision coming
in March of 1990, in response to Reg. Sec. 1.170A-13(c)(4) requiring
that an "appraisal summary" be attached to a donor's income tax
return.
|
Danny: "Don't Tell the Accountants About the Horses"
Did he not want Linda to tell the IRS either?
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Subject: |
Re: |
| Date: |
Tuesday, April 12, 2005 6:11 PM |
|
Dear Linda Sue,
Once again you didn't listen to what I told you. In my last
email to you about ****** I told you that he was giving
us CASH receipts. As far as your accountants are concerned they
don't need to know anything about horses. I didn't ask him to
do this. This is the way he wants to run it through his accounting.
That's good for us. He is sending you a cash receipt just the
same as if you had sent him a check for $20,000. Good Eh!
This is the kind of junk that I don't want to be a part of
anymore. We don't even know this ******, yet he is able to
get us BOTH to defend ourselves to him. This is wrong on both
of our parts. I do apologize as I don't want to be a part of
that junk anymore......."defending" or trashing as we both have
done. Please forgive me! With God's help I want to put the
past behind and just concentrate on what the Lord has for me
in the future. I hope you can feel the same. That's why we
need to talk.....Most everything we hear about the other one
is just that.....Hearsay! We don't communicate any more. But
people constantly tell me how badly you have trashed me and many
times I find myself defending myself. I'm through with that.
God wants us to move on. We can move on totally without each
other or the Lord may have us to mend some fences between us
so we can continue to work for him.
What do you say? Let's be friends Eh!
Dan
|
Been involved in deals like this with Danny Shelton? Then it might be wise for you to seek the advise of a
professional accountant to see if anything was done inappropriately. And if anything was, it might also be wise
to contact the IRS and try to make things right. One CPA we spoke with thought it would be better to contact the IRS
first rather than wait for the IRS to contact you.
Linda: "I want to Be Honest"
|
-------- Original Message --------
| From: |
Linda Shelton |
| To: |
Danny Shelton |
| Date: |
Wednesday, April 13, 2005 7:22:12 AM |
|
I do not want the $20,000 cash receipt. I think if we gave horses,
we need to claim that we gave horses and give the appraisals
and proper documentation.
LS
|
Danny: "They Might Not Appraise at $40,000"
And why might they not appraise that high? Because back
in 2004 Danny himself said
they weren't worth that much.
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Subject: |
RE: |
| Date: |
Wednesday, April 13, 2005 7:34 AM |
|
Linda, can we talk about why you don't want a cash receipt.
It's nothing that we are doing wrong. If I understand it, he
has the option of writing the receipt the way that's best for
him. It's definately better for us, or at least quicker and
easier for us to get a cash receipt. An appraisal can take time
and cost money. We also have no guarantee what they will appraise
for. I'm willing to do what you want, but it could take from
a couple of weeks to a couple of months to try to get an appraisal.
I'd like to call you in a few minutes and talk about it. OK?
Dan
|
So what's the point about how much the horses are really worth? Suppose you want to sell
a horse for $3,000 and it just won't sell. Suppose you give it away and get a cash receipt
for $20,000. Suppose if you had not claimed a charitable contribution deduction for $20,000
that you would have had to pay 15% of that amount in taxes, or $3,000. Thus, by giving away
the horse you just saved $3,000 in taxes. In effect you sold your horse to the IRS for $3,000
without the IRS getting the horse out of the deal.
Do we recommend such a strategy? Absolutely not! Get the appraisal, file Form 8283, and claim only
what the item is actually worth. Even if the IRS never catches you, God already has, and He will
call you to account one day, whether you like it or not.
Danny: "Appraisals Are a Problem"
Would you not expect someone who has been the founder, president, and CEO of a 501(c)3 for the last 20-odd
years to have a handle by now on how charitable donations of property are supposed to be appraised and receipted?
This interchange between 3ABN president Danny Shelton and his ex-wife Linda documents why
a forensic audit is needed at 3ABN. And if ASI won't do it, if concerned Seventh-day Adventist
members aren't allowed to do it, someone else just might take up the baton, someone else that doesn't
need Danny Shelton's permission to do so, someone else who won't be as nice.
|
-------- Original Message --------
| From: |
Danny Shelton |
| To: |
Linda Shelton |
| Date: |
Wednesday, April 13, 2005 8:06 AM |
|
Linda I tried to call you to explain the tax thing. I tried
both numbers and you didn't answer. Please talk to me about
it. I won't explain it all in the email. We don't have to talk
about anything else. Just the tax issue. Then if you still don't
want to talk to me ever again we don't have to. I hope that's
not the case, but I will respect your position.
There are some complications with getting an appraisal.
I'll try to call you again shortly. I'll do what you want,
but If I'm the one responsible for putting this together, then
I would like to at least talk to you first about it.
DS
|
|
