Tax deductions
#2
I'm not an accountant, so this is just my general knowledge. If you donate a quilt you make to a 503C non profit, you can deduct the cost of the materials used less any benefit you received (if any). I do not believe you can deduct your time or effort. You will likely want to save receipts in case you are ever audited.
#3
Senior Member
Join Date: Nov 2010
Posts: 345
I have a friend who has been a tax preparer for years and this is the same information that she has given me. You get no credit for your time, only supplies. I never bother saving all those receipts as I'm just not that organized.
#4
Power Poster
Join Date: Feb 2009
Location: Northern Michigan
Posts: 12,861
in order to use a tax credit for your charitable donation you need a reciept---good records- you are allowed to
'claim' the cost of materials used---no time- no market value-
and you need a receipt- it has to be a legitimate (tax exempt) charity that is recognized by the irs.
paperwork is very important---you need to save your reciepts for your materials you are claiming-plus have the donation receipt.
'claim' the cost of materials used---no time- no market value-
and you need a receipt- it has to be a legitimate (tax exempt) charity that is recognized by the irs.
paperwork is very important---you need to save your reciepts for your materials you are claiming-plus have the donation receipt.
#6
Senior Member
Join Date: Jul 2011
Location: Dillsburg, PA
Posts: 314
Agree. I have a small in home business pouring and selling candles. A few years ago I got a call from my church asking me if I had any cases of a certain style jar. My best friend was a CCD teacher and had bought candles from me to give to the other teachers and advisors for Christmas. They liked the jar and wanted to use them for a CCD project. I did have the jars and they were willing to pay me for them...I said no. I donated the jars to them and they gave me a receipt for the wholesale price that I paid to my supplier. And that's what I used for the deduction on our income taxes. And if I do a craft show or open house and give candles as prizes...I can only deduct the actual cost to make the product...not what it would cost retail.
#7
One word of caution, the amount claimed by the taxpayer must be donor assigned. The charity is not supposed to put any dollar amount on the receipt they give the donor. That's why it's critical that you have receipts for "new" goods donated or use generally accepted values (there are several lists available) for "used" goods donated.
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