Can you really get a bunch of old phones from a cell phone store for free so they can get tax credit ?

Question

Hi,
I saw in another post someone talking about how they are looking for cell phones to sell and someone said that they could go to a phone store and get a bunch of customer returns for free so the store can get tax credit for giving them to you, does anyone know if this is true? Please help!! THANK YOU SO MUCH FOR YOUR TIME!!

Answer 1

Uhmmmm....no a store doesn't at all get tax credit for giving them away to consumers.

Stores yes can on their 1120 or 1120S can itemize donations on their tax returns if they show proof of which charity (they do need to provide an EIN number and be legally registered). But giving it to just someone does not entitle them to tax credits.

Answer 2

I didn't see the post you are referring to, but I do know that the answer is no. The phone store will take your old phone, sometimes with a trade in value when you buy an upgraded phone or service. They will also take your phone to dispose of. The store will look to see if it is analog or digital service. If it is analog it will be disposed of as scrap. If it is digital they will try to bring it back to life and use it in emergency situations, such as floods and hurricanes, as a public service. The phone company gets the tax credit for providing a free public service, not the person using the phone.
They do not give old phones away to the public. They are of no value or use unless activated with equipment codes and routing information, and a telephone number. Without that being entered into the phone you only have a paper weight.