HomeMy WebLinkAbout4.F.3. Approval of Burmahi Land Donation Form for Non-Cash Charitable Contributions-Res. No. 7282 Consent Business 4. F. 3.
SHAKOPEE
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
DATE: 03/05/2013
SUBJECT: Approval of Burmahi Land Donation Form for Non -Cash Charitable Contributions - Res. No. 7282 (F)
Action Sought
The Council should authorize signing of a form acknowledging a charitable donation in 2012.
Background
On June 5, 2012, the City formally accepted a donation of 3.25 acres of land, comprising three vacant parcels
located north of First Avenue, and east of the motel on Bluff Avenue. The donation was made by Burmahi, Inc.,
which was a long time owner of the land.
The City has since been contacted by the accountant for the donor, asking the City to execute IRS Form 8283,
which acknowledges non -cash charitable contributions. By doing so, the City is not agreeing to the value, but
merely acknowledging that a donation was made by Burmahi.
The attached Resolution No. 7282 authorizes the City Administrator to sign the form, and also authorizes the City
Administrator to sign any IRS forms which may be received after the Council has accepted any similar donations in
the future.
It should also be noted if the City chooses to sell the land within three years, the City itself will have to file Form
8282.
Recommendation
I recommend that Council adopt the attached resolution.
Budget Impact
No impact.
Relationship To Visioning
This supports Goal F, "Housekeeping ".
Requested Action
If Council concurs, it should authorize execution of IRS Form 8283 acknowledging the Burmahi donation, and
further allow the City Administrator to sign future similar forms.
Attachments: Res. No. 7282
RESOLUTION NO. 7282
RESOLUTION AUTHORIZING THE SIGNATURE OF INTERNAL REVENUE SERVICE
FORMS RELATING TO NON -CASH CHARITABLE DONATIONS
WHEREAS, on occasion the City of Shakopee is the recipient of non -cash charitable
donations; and
WHEREAS, on June 5` 2012, the City of Shakopee received 3.25 acres of land located
on First Avenue, from Burmahi, Inc.; and,
WHEREAS, in order to complete the transaction from a tax standpoint, IRS 8283 must be
executed; and
WHEREAS, the City of Shakopee will, in the future, likely be the beneficiary of similar
non -cash donations of real estate and goods; and
WHEREAS, it is expeditious for Staff to be able to execute these documents,
acknowledging receipt of said donations.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF SHAKOPEE, MINNESOTA, that the City Administrator or his/her designee
is hereby authorized to execute said Internal Revenue Service Form 8283 in favor of Burmahi,
Inc., concerning the 2012 receipt of 3.25 acres of donated land located on First Avenue.
BE IT FURTHER RESOLVED, that any future similar receipt of non -cash donated
property or goods shall also be able to be acknowledged for Internal Revenue Service purposes
by the City Administrator or his/her designee.
Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this Fifth
day of March, 2013.
Mayor of the City of Shakopee
ATTEST:
City Clerk
�� LAWRENCE PARKHURST, P.A.
� �
Certified Public Accountants and Bzcsiness Advisers
io55 East Wayzata Boulevard • Suite 30� • Wayzata,1VIN 5539i
95�•475•997� ' 95�•475•��74 F^x
www.parkhurstcpa.com
Februazy 21, 2013
City of Shakopee
Mark McNeill
129 Holmes Street S
Shakopee, MN 55379
RE: Burdette Stief Land Donation
Dear Mark:
Enclosed are five copies of form 8283 in regards to Burdette Stief's Land Donation.
Could you please sign all five copies, keep the copy that is stamped client copy for your
records and return the remaining four signed copies to us in the enclosed postage paid
envelope.
We appreciate your assistance with this matter. If you have any questions feel free to
contact me at 952-475-9970 or via email at lparkhurst@parkhurstcpa.com.
S incerely,
���.�l�t.1/h�
Lawrence Parkhurst,PA
Ce�850 02/2112013 9�.19 AM
� � � �;
Form $283 � � Noncash Charitable Contributions OMBNo 1545-0908
�Re� oeoamber zoiz> " ►Attach to your tax return if you claimed a total deduction
DapaRment of the Treasury of over 5500 for all contributed property.
Attachment
Intemal Revenue Service ► Information about Form 8283 and its se arate instructions is at www.irs. ovlforms283. saq�a��a No. 155
Name(s) shown on your income tax retum Identifying number
BURMAHI INC. 41-0912246
Note. Figure the amount of your contribution deduction before compietinq this form.See your tax return instructions.
Section A. Donated Property of$5,000 or Less and Certain Publicly Traded Securities—List in this section only
items (or groups of similar items) for which you claimed a deduction of$5,000 or less. Also, list certain
publicly traded securities even if the deduction is more than $5,000 (see instructions).
'p�att I 'i; Information on Donated Pro e —If ou need more s ace attach a statement.
(b�If donated property is a vehicle(see instructions), (c)Dascri tion of donaled ro ert
(a�Name and address of the P P P Y
� donee organ¢ation check lhe box. Also enter lhe vehicle itlentification (For a donatetl vehicle,enter the year,make,model,condition,and
number unless Form 1098-C is attached milea e,unleas Form 1098-C is atlached.
A
8
C
D
E
Note. If the amount ou claimed as a deduction for an item is$500 or tess, ou do not have to com lete columns e , ,and
(d)Date of the (e)Date acquired �n How acquired (g)DonoYs cost (h)Feir market value (1)Method usetl to dalermine
contribulion by donor(mo.,yr.) by donor or adjusted basis (see instrudions) the feir market value
A
B
C
D
E
F��t'�.I� ;; Partial Interests and Restricted Use Property—Complete lines 2a through 2e if you gave less than an
entire interest in a property listed in Part I. Complete lines 3a through 3c if conditions were placed on a
contribution listed in Part I; also attach the required statement (see instructions).
2a Enter the letter from Part I that identifies the property for which you gave less than an entire interest ►
If Part II applies to more than one property,attach a separate statement.
b Total amount claimed as a deduction for the property listed in Part I: (1) For this tax year ►
(2) For any prior tax years ►
c Name and address of each organization to which any such contribution was made in a prior year(complete only if different
from the donee organization above):
Name of chantable organization(donee)
Address(number,street,and room or suite no.)
City or town,stata,and ZIP code
d For tangible property,enter the place where the property is located or kept►
e Name of any person,other than the donee organization,having actual possession of the property►
3a Is there a restriction,either temporary or permanent,on the donee's right to use or dispose of the donated Yes No
property?
_ _ . . _.. . ... _ _. _ _ _.. . . ....
b Did you give to anyone(other than the donee organization or another organization participating with the donee
organization in cooperative fundraising)the right to the income from the donated property or to the possession of
the property,including the right to vote donated securities,to acquire the property by purchase or otherwise,or to
designate the person having such income,possession,or right to acquire?., .......
c Is there a restriction limitin the donated ro e for a articular use?
For Papervvork Reductfon Act Notice,see separate instructions. FoRn$283�Re�.iz-zoi2�
DAA
02650 02/21/2013 9�.16 AM
,Fcrrri 82��3 Rev. 12-2012
Pa e 2
Name(s)shown on your income tax retum Identifying number
HURMAHI INC. 41-0912246
Section B. Donated Property Over$5,000 (Except Certain Publicly Traded Securitiesµist in this section oniy items(or groups of
similar items)for which you claimed a deduction of more than$5,000 per item or group(except contributions of ceRain publicly traded
securities reported in Section A).An appraisal is qenerally required for property listed in Section B(see instructions)
''Part l'I ii Information on Donated Propertv—To be completed by the taxpayer and/or the appraiser
4 Check the box that describes the type of property donated:
a Art'(contribution of$20,000 or more) b Qualified Conservation Contribution c Equipment
d Art`(contribution of less than$20,000) e X Other Real Estate f Securities
g Collectibles" h Intellectual Property 1 Vehicles
j i Other
'AA includes paintings,sculpWres,watercolors,pnnts,drawings,ceramlcs,antiques,decorative arts,texliles,carpels,silver,rare manuscripts,histoncal memorabilia,and
other simllar objects.
"Collectibles include coins,stamps,books,gems,jewelry,sports memorabilia,dolls,etc.,but not aR as defined above.
Note. In certain cases,you must attach a qualified appraisal of the property.See instructions.
$ (a)Description of donaled property(ii you need (b)If tangible property was dona�ed,give a brief summary of the overall �c)Appraised tair
more space,anach a separate statement) physical condition of the property at the time of the gift market value
A VACATSD LAND-1ST AVENUB EAST SHAROPEE MN SATISFACTORY 970,000
B
C
D
(d)Date acquired (e)How ecquired by donor (Q Donofs cost or (g)For bargain sales,enter See instructions
by donor(mo.,yr.) adjusled basis amount received (h)Amount claimed as a (I)Avarage trading pnce
daduction oi secunties
A O1 O1 93 PURCHASE 250, 015
B
C
D
i�!8rt 11_';: Taxpayer(Donor) Statement— List each item included in Part I above that the appraisal identifies as having
a value of$500 or less. See instructions.
I declare that the following item(s)included in Part I above has to the best of my knowledge and belief an appraised value of not more than$500(per item).
Enter identifying letter from Part I and describe the specifc item.See instructions.►
Signature of taxpayer(donor)► Date►
''pat�(II<:`: Declaration of Aparaiser
I declare that I am not the donor,the donee,a party to the transaction in which the donor acquired the property,employed by,or related to any of the foregoing persons,or
married to any person who is related to any ot the foregoing persons.And,if regularly used by the donor,donee,or party to the transaction,I performed the majority of my
appraisals during my tatt year for other persons.
Also,I declare that I perform appraisals on a regular basis;and that because of my qualifications as described in the appraisal,I am qualified to make appraisals of the rype
of property being valued.I certify that the appraisal fees were not based on a percentage of the appraised property value.Furthermore,I understand that a false or
fraudulent overstatement of the property value as described in the qualified appraisal or this Form 8283 may subject me to the penalty under section 6701(a)(aiding and
abetting the understatement of tax liability).In addition,I understand that I may be subject to a penalty under section 6695A if I know,or reasonably should know,that my
appraisal is to be used in connection with a return or claim for refund and a substantial or gross vatuation misstatement results from my appraisal.I affirm that I have not
been barred from presenting evidence or testimony by the Office o(Professional Responsibility.
Sign
Here Signature� Title� Oate�
Business addreas(including room or suite no.) Identifying number
3144 HENNEPIN AVENUE STE 202
City or town,state,and ZIP code
MINNEAPOLIS MN 55408
!R�rt(w` Donee Acknowledgment—To be completed by the charitable orqanization
This charitable organization acknowledges that it is a qualified organization under section 170(c)and that it received the donated property as described
in Section B, Part I,above on the following date►
Furthermore,this organization affirms that in the event it sells,exchanges,or otherwise disposes of the property described in Section B,Part I(or any
portion thereo�within 3 years after the date of receipt,it will file Form 8282,Donee Information Return,with the IRS and give the donor a copy of that
form.This acknowledgment does not represent agreement with the claimed fair market value.
Does the or anization intend to use the ro e for an unrelated use? ► Yes No
_ ... _ _ _
Name of chantable organization(donea) Employer identification number
CITY OF SHAKOPEE
Address(number,street,and room or suita no.) City or town,stete,and ZIP code
129 HOLMES STREET SOUTH SHAKOPEE MN 55379
Authonzed signature ( /� I Title �1 Date
/�t[:.L�L I��' ���� C'_i ( 4' 6` t�>��i//�c ��J�� ( :a
D� Form $2 3(Rev.12-2012)