Computer Transfer Policy

Policy Statement

ELIGIBILITY

• Computers purchased using Dartmouth non-sponsored funds.

Note: This process is not appropriate for computers purchased using sponsored funds, unless specifically noted in the proposal or award.  Consult with the Office of Sponsored Projects and your grant manager before initiating this process, if the computer was purchased using sponsored funds.

• All sales of Computer Assurance Program (CAP) Program computers are solely processed through The Dartmouth College Computer Store ("The Computer Store").

TAX IMPLICATIONS OF NON-SALE TRANSFER AND GIFTS

• Tangible property with a current market value of $50.00 or greater is considered tax reportable.
• Employees (Dartmouth Faculty, Staff, Students or Fellows) who are paid through Dartmouth Payroll:  The current market value of the computer will be reported to Payroll as imputed income and the tax is deducted from the employee's payroll payment.
• Individuals (students/others) who do not work for Dartmouth College:  The current market value of the computer will be reported to Accounts Payable.  If the combine total of all monetary and non-monetary income exceeds $600, the sum is reported on an IRS 1099 form.
• Individuals who are non-residences of the United States for tax purposes:  All gifts or funds given to the individual must be reported through the Finance Center.

INITIATING TRANSFER / SALE / GIFT PROCESS OF COMPUTER

1. Obtain the Current Market Value:  Provide the serial number and description of the computer to the Manager at The Computer Store.  The Manager will then provide the current market value of the product to the appropriate department administrator or contact.
2. Complete the Equipment/Asset Transfer Request Form:  With the information obtained from The Computer Store, complete the Equipment/Asset Transfer Request Form.  Obtain the required signatures and submit the form to Materials Management.  This must be done prior to moving forward with the transfer, sale or gift.
3. Back-up data and go to Computer Store Repair Shop:  With the completed and signed Equipment/Asset Transfer Request Form take the computer to The Computer Store Repair Shop.  A work order will be completed to wipe and reinstall the original operating system.  All data will be removed from the computer during this process.  The recipient is responsible for backing-up any data that they are legally allowed to keep.  This data back-up must be done prior to dropping off the computer at The Computer Store.

FOR THE SALE OF COMPUTER

1. An $80.00 fee plus the current market value of the computer will be charged to the recipient when the signed Equipment/Asset Transfer Request Form and computer is dropped off at The Computer Store Repair Shop.
2. The Computer Store will collect all payments plus require the recipient to complete and sign a Bill of Sale transferring the ownership of the computer.
3. The Computer Store will deposit $1.00 plus the value of the computer back into the Department account which confirms the process is complete and creates a record of the transaction.

FOR NON-SALE TRANSFER OR GIFT OF COMPUTER

1. An $80.00 fee will be charged to the Department Chart String.
2. The Computer Store will require the recipient to complete and sign a Bill of Sale transferring the ownership of the computer.
3. The Computer Store will deposit $1.00 back into the Department account which confirms the process is complete and creates a record of the transaction.

REPORTING NON-SALE TRANSFER / GIFT OF TANGIBLE PROPERTY

Gifts to Dartmouth Employees (Faculty, Staff, or Fellows):

1. Complete the General Request eForm to report all Gifts or Transfer of tangible property.
2. Select "HR/Payroll/Tax Reporting Submittal" from the Request Type dropdown menu.
3. Provide the Employee Name, NetID, and description of the equipment and current market value in the Request Explanation field.
4. The Finance Center will route Employee requests to the Payroll Office.
5. The current market value of the equipment will be recorded as imputed income and taxes withheld (deducted) from the employee's payroll payment.

Gifts to Dartmouth Students and Non-Employees:

1. Complete the General Request eForm to report all Gifts or Transfer of tangible property.
2. Select "HR/Payroll/Tax Reporting Submittal" from the Request Type dropdown menu.
3. Provide the recipient's name, include NetID for students, address, and description of the equipment and current market value in the Request Explanation field.
4. Provide the Social Security number in the designated Social Security# field.
5. The Finance Center will route non-employee requests to Accounts Payable.
6. For US Residents, Tax Purposes:  If the current market value alone or combined with other taxable payments issued to the individual totals $600 or more within a calendar year, the sum will be reported to the IRS and individual on the IRS 1099-MISC.
7. For Non-Residents, Tax Purposes:  The tax associated with the current market value of computer, regardless of amount, will be reported on the IRS Form 1042-S.

NOTES

1. Computers bought on Sponsored Research Projects will not be gifted to individuals.  For more details go to: https://www.dartmouth.edu/osp/resources/policies/dartmouth/dataretention.html.
2. Grant and PI Transfers, for more information go to: https://www.dartmouth.edu/osp/resources/pitransfers.html or consult with the Office of Sponsored Projects and your grant manager.
3. Additional information or questions, please contact the Manager at The Computer Store or Materials Management at Dartmouth.