Re: [taxchat] Charitable Contribution

Not necessarily...Since this is her regular profession, it could be a promotional expense.  Same as advertising.  I suppose if you want to get really specific, it would depend on her intent, and who's to say what her true motivation was, except her?

 

If her intent was to promote herself, get her name out there, showcase her talents and gain publicity, I would deduct the out of pocket costs as business expenses.

 

If her intent was purely charitable, and she had no desire to promote her talents and gain publicity (yeah, right), you would have to take it as a charitable expense.  It's almost impossible to believe that she didn't want to promote herself, though.  If that was her intent, she would donate cash or something else anonymously.

 

 

 

From: Lynne Ayton

Sent: Thursday, September 11, 2008 11:26 AM

To: taxchat@yahoogroups.com

Subject: Re: [taxchat] Charitable Contribution

that brings up a good point as i've had this happen before:  client did a job for a church.  the church paid the client; the client cashed the check, and then donated it to the church.  charitable deduction was taken, & all expenses in regards to this were busn deductions.  arnie questions as to whether busn or charitable deductions - would have to be charitable as there is no income in this case.
lynne


Debbie Breedlove wrote:

You are correct.  Even if they gave her a "receipt" for her gift, but she cannot deduct the value of her services.  Period.  However, she can deduct any out of pocket expenses she incurred in conjunction with performing the service.  Mileage, supplies, whatever.

 

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